The Advantages And Disadvantages Of Free Market Economy, price Determination With Market Forces. And Government Intervention With Free Market Equilibrium Price and the More suitable model for the Sudan
Advantageous of free market economy
1. market economies can adjust to change easily( If there is a demand for one thing, companies have the ability to change what they produce instead of having to go through too much government protocol first)
2. Rational self interest in market economies are also encouraged (allow freedom for people to do what they want, make what they want, and, sell what they want -to a certain extent-, this can also be described as being able to decide what is going to be produced , how it is going to be produced and for whom it is going to be produced). the government tries to stay out of the way of businesses- Although the government sets certain standards businesses must follow- for the most part businesses can do as they please.
3. there is a great variety of goods and services for consumers ( If there is a demand for a good or service, the demand will almost always be met in a market economy).
4. market economy encourage competitive environment, ( competition does encourage innovation, and the free market economy has produced well over a century of dizzying technical progress. At the same time productivity has also increased at a phenomenal rate. competition is one of the basic reasons why there are generally so many different varieties of goods for consumers to choose from .
On the production side of the market, firms making goods which is more popular with consumers can sell them at competitive pri ...