Define what is meant by market equilibrium. With the aid of diagrams, explain how market forces determine equilibrium price and quantity. Discuss the reasons for and methods of government intervention in markets. A particularly notable feature of market economies is the effect of the price mechanism on demand and supply. The price mechanism determines the equilibrium in the market and is the interplay of the forces of supply and demand in determining the prices at …
showed first 75 words of 2096 total

showed last 75 words of 2096 total
…is said that the market mechanism achieves consistency between plans and outcomes for consumers and producers without explicit coordination. Government intervention is very important in providing the desired outcomes of the society. Overall, market equilibrium is determined by the price mechanism, supply and demand curves, surplus and shortage, increases and decreases in supply and demand curves, market behaviours and government intervention. ##Please comment on my essay so that i know what to improve. Thank you