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Free markets create maximum economic value at the output at which supply and demand curves intersect
Free markets create maximum economic value at the output at which supply and demand curves intersect.
A. True
B. False
Expert Solution
In free market concept there are no intervention of any government or others. In free the price in the market is set through competition where the total amount of produced goods or services which the potential buyers want to purchase is equal to the amount of goods or services the manufacture want to sell. Their market equilibrium is when demand of commodities becomes equal to its supply and the equilibrium price is where the demand and supply curve converge with each other. So from this we can say- Free markets create maximum economic value at the output at which supply and demand curves intersect
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