What Are The Advantages Of Free Market Economy?

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amber Jhon Profile
amber Jhon answered
There are a number of advantages of free market economy. The first advantage is that buyers or the consumers are free to purchase any commodity. Sellers also get the advantage because they are also free to produce any product. Free market economy may also result rewards for the producers with the increase in production. State intervention is low in the free market economy. Therefore, first advantage of free market economy is the benefits of buyers and the sellers.

Price determination is also unique because price is determined by the market forces of demand and supply and not the state. Therefore, it brings transparency in the prices of the goods and the services. Free market economy also results in bringing the optimal distribution of the country's resources. Moreover, free market economies also enhance the economic growth in the developed countries because of the increase in competition.
Anonymous Profile
Anonymous answered
Well, this is a wide and diverse question. Answering this question prevades almost all the econmical knowledge. However, in a free market economy, resources are allocated according to the law of demand and supply, Without Governments intervening( which they often do), However a free market economy tends to be productive  and efficient., in the sense that let say the demand of a good rises, A rise in teh demand of the god will mean that if the same factors are producing there will be a shortage of the good since the producers can't meet the demand. However in a free market economy, the producers will see the demand of the good rising and thus enter the business as they can make more money, this free market economies tend to lower prices.

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