business terms
2006-07-26 01:46:20 · 4 answers · asked by kenny s 1 in Local Businesses ➔ Other - Local Businesses
When the market forces, mainly demand and supply, determine the behavior of the economy, it is known as market driven economy. Other factors do have their roles to play such as the regulator, a government or an executive authority, but such roles are limited and within defined scope.
Most capitalist economies are market driven economies. In business terms, a market driven economy produces, distributes and make available for consumption what is demanded. A few areas are left with the state to do the needful namely law and order, national security, common currency etc. For other areas, even if the government participate, it competes with the private players and the market forces determine the off-take from each such player for its goods and services.
2006-07-26 07:17:17 · answer #1 · answered by helpaneed 7 · 0⤊ 1⤋
When prices are set by the consumer. If there is a demand for a certain product or service. Something, oh how about oil! Imagine if the most populace countries like China and India start using more oil every day. Since oil is only found in certain places and it takes time for oil to be formed. There is only a finite (limited) amount for everyone to use. So the seller asks for bids. Then the commodity traders bid against each other and the next thing you know we are paying $3+ for a gallon of gas
2006-07-29 16:51:53 · answer #2 · answered by iamwelndowd1 2 · 0⤊ 0⤋
is this from ur history textbook? if so then dont ask homework on yahoo!^^
2006-07-26 01:52:04 · answer #3 · answered by derderdane 3 · 0⤊ 0⤋
SUPPLY AND DEMAND
2006-07-26 01:50:31 · answer #4 · answered by flowerspirit2000 6 · 0⤊ 0⤋