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From course:

Economics A Level (DONEEEEEEE)

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Question:

What are the Disadvantages of the Price Mechanism

Author: eric_galvao



Answer:

-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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