The paper "The Economics of Business" is a reasonable example of a Business assignment. People of the same trade seldom meet together even for merriment and diversion, but the conversation ends in a conspiracy against the public or in some contrivance to raise prices. Examine the argument in favor of a market system of allocation. Free market resource allocation is the process that is applied directly to the existing marketing structures. The structures are mostly governed by the ultimate diverse demand of the products and services in question. Once the demand and supply have been identified in an area, all interested parties have to put effort to ensure that specific goods and services are provided.
This determines the prices of the goods and services that are needed and how they should be provided. Free market resources ensure that the economy and resources can be controlled and governed by other existing structures other than the state. This creates the free flow of resources from the areas that lack the products and services. The issue of prices of the said goods and services is governed by the existing demand for the resources allocated in an area. In many instances, the market has been infiltrated against all acts of economic fraud and malpractice.
This is because many of the involved parties do not take time to improve what the current system of buying and selling has to offer (Hacker 2010). Many used the process of demanding and buying to create an avenue of scarcity and hoarding. Once this happened, it was possible to create avenues for parties to intervene in a greedy practice. They provided these products and services by thriving on the nonexistent shortage to hike the price.
The fact that the existing demand determines what it needs and what it does not is an added advantage. This is because the general cost of producing goods and services not needed is avoided. It is possible to ensure that the producers of the goods and services are produced at a cost for people who will consume them. This keeps the chain of demand and supply flowing smoothly (Hacker 2010).
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