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Definitions from the Web

Market Mechanism

A market mechanism refers to the process through which the supply and demand for goods and services determine the prices and quantities produced in a market economy.

Senses:

1. Economic Sense: The combination of buyers and sellers interacting in a market to determine prices and allocate resources.
2. Social Sense: The way in which the market system operates and influences society as a whole.

Usages:

1. Economic Usage:

The market mechanism plays a crucial role in determining the prices of commodities based on their supply and demand.

2. Social Usage:

The market mechanism promotes competition and innovation, leading to economic growth and improved living standards.

Sample Sentences:

1. The market mechanism ensures efficient allocation of resources in a free-market economy.
2. Through the market mechanism, prices are adjusted to balance supply and demand.
3. Adam Smith famously championed the market mechanism as the basis for a successful capitalist system.

Related Products:

• Economics Books
• Books on Capitalism
• Market Economy