Purchase Solution

Whether prices determined in a free market environment

Not what you're looking for?

Ask Custom Question

Explain why you think prices are or are not determined in a free market environment in the United States.

Contrast how a market system and a command economy try to cope with economic scarcity.

Purchase this Solution
Solution Summary

The expert explains why they think prices are or are not determined in a free market environment in the United States. The market system and command economy are contrasted.

Solution Preview

The United States has many elements of a free market, but many prices aren't determined solely in this manner. For example, the prices of agricultural goods are kept artificially high, as the government pays farmers not to produce. There are many other such examples. Whenever the government interferes in individual economic transactions, the market isn't free. For example, illegal drugs are more expensive than they would otherwise be because of ...

Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Free Market Pricing in the US

    275499 Prices in a Free Market Environment in the U.S. Explain why you feel prices are or are not determined in a free market environment in the US. Cite at least one example to support your opinion.

  • Business economics

    To live in society men needs freedom of action. 3. Please explain how prices are determined in the free market. A free market is market which is free of the government regulation and interventions.

  • Prices on eBay

    If the buyer finds the product to be too expensive, they would not bid any higher than they consider to be a fair market value of the product. If an outside agency determined the prices on eBay, then eBay would no longer be a free market system.

  • Marketing mix

    Comparability: it must be comparable over a period of time if necessary. 6. Please explain how prices are determined in the free market. A free market is market which is free of the government regulation and interventions.

  • Due to the free rider problem with innovation

    In a free market economy prices dictates resources allocation, so rich consumers' preferences get much more attention than poor consumers' - False The due to the free rider problem with innovations are determined.

  • Foundation of Capitalism

    In a free market, prices are not determined by sellers; they are determined by BUYERS AND SELLERS NEGOTIATING IN THE MARKETPLACE. 2. Price is determined through the economic concepts of supply and demand. THE ECONOMIC CONCEPT OF SUPPLY. 1.

  • apple swot

    Thus, one can introduce competitive products at lower prices in order to capture the market share of Apple in product segments like Ipods, Notebooks,etc.

  • A large company is deciding whether to introduce a new service

    Significance of the Research This paper and the evaluation of market and new service introduction provide us a significant knowledge and cognition regarding the market environment and needs of customers' that in turn assist can assist us in undertaking

  • Global Business Strategies and Economy

    In a market economy, if the government wants more steel, it collects taxes and then buys the steel at market prices. In a planned economy, a government which wants more steel simply orders it to be produced and sets the price by decree.

View More Related Solutions