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Free market economy (Advantages (Allocatively efficient (Nor surpluses or…

- - - - Productive inefficiency
- - - - High prices
        
        Higher prices discourage consumers
        
        Higher prices encourage suppliers to sell more to the market due to the profit incentive
      - Low prices
        
        Producers are discouraged from production.
        
        Buyers to purchase more goods as they will gain more satisfaction per pound spent