Tuesday, May 15, 2012

Markets in a Modern Economy

Markets in a Modern Economy

Markets in a Modern Economy

Economics Revision Article Series

Authors

In markets economic decision flow through buyers and sellers who set quantities they want buy or sell at various prices. the transactions in a period occur at market clearing prices.
Adam Smith argued that the invisible hand of markets would lead to optimal economic outcomes as individual pursue their own self-interest in setting quantities and prices.

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