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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.
Card 1 of 20
1.2.7 Price mechanism Flashcards
20 flashcards on Edexcel A A Level Economics 1.2.7 Price mechanism: the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3.