Question:
What are the Disadvantages of the Price Mechanism
Author: eric_galvaoAnswer:
-Inequality in Wealth and Income most Likely -An Under-Provision in Merit Goods and Over-Provision of Demerit Goods as Supply and Demand won't be Socially Optimal -People with Little Skills or Work Ability will get Low Wages or Unemployment -Public Goods shall not be Produced. -Unintended Consequences may happen as Factors/Reasoning may be Ignored
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