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1.2.7 Price mechanism

How does the price mechanism coordinate decisions without a central planner?

A

Producer output determines prices that coordinate buyers' and sellers' decisions without central direction.

B

Consumer preferences determine prices that coordinate buyers' and sellers' decisions without central direction.

C

Government regulation fixes prices that coordinate buyers' and sellers' decisions through central direction.

D

Demand and supply interact to set prices that coordinate buyers' and sellers' decisions without central direction.

1.2.7 Price mechanism Flashcards

  1. A Level
  2. /Economics
  3. /1.2.7 Price mechanism

Flashcards for Edexcel A A Level Economics 1.2.7 Price mechanism, covering the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3. 20 cards, matched to the Edexcel A A Level Economics (9EC0) specification.