Question

How capitalistic economies solve various economic problems?
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Answer 1

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Under capitalistic economy, allocation of various resources takes place with the help of market mechanism. Price of various goods and services including the price of factors of production are determined with help of the forces of demand and supply. Free price mechanism helps producers to decide what to produce.

Answer 2

Answer:

Under capitalistic economy , allocation of various resources takes place with the help of market mechanism .Price of various goods and services including the price of factors of production are determined with the help of the forces of demand and supply. Free price mechanism help producers to decide what to produce.