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    Capitalism in a competitive market

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    Q1. What role does freedom play in capitalism? How important is it to the operation of a competitive market economy?

    Q2. Explain why the market system is an organizing mechanism.

    Q3. Describe and give a reason for the law of supply.

    Q4. What is the difference between a change in supply and a change in quantity supplied?

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    https://brainmass.com/economics/capitalism/capitalism-competitive-market-394527

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    Q1. What role does freedom play in capitalism? How important is it to the operation of a competitive market economy?

    Freedom is synonymous with capitalism. Embedded in capitalism is the freedom to choose the product that the consumer wants. Without a freedom of choice there will be no competitive market economy. Without freedom of choice, the law of supply and demand gets distorted.

    Q2. Explain why the market ...

    Solution Summary

    This solution discusses the role does freedom play in capitalism and how important it is to the operation of a competitive market economy. The dynamics of the market such as the law of supply and demand is discussed.

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