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Economic systems, Supply higher than demand, Demand higher than supply,…
Economic systems
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The Mixed Economy system
The aim of this system is to avoid the negative effects of the unequal distribution of wealth in a free market. And the lack of efficiency that characterises authority-based systems.
The free market deals with basic economic problems, but the state acts as an authority to help with equal opportunities and to do it collect taxes
This money is used to finance what is known as, the welfare state, which invests in:
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*The free market regulates the production and sale of products and services based on the prices estabilished by supply and demand