The price mechanism
The price mechanism
The price mechanism is the way prices moving up and down in free markets determine what is produced, how much is produced, and who receives goods and services. No central planner needs to decide how many loaves of bread are baked.
Step-by-step lessons on OCR GCSE Economics 2.4.5 Role of markets in allocating resources. Each one builds up to exam-style questions. Build a solid grasp of supply and demand and cost/revenue calculations before tackling the evaluation-heavy policy topics.