Chapter 7, Problem 4AA

To determine

To choose: The term that best completes the given sentence.

Answer to Problem 4AA

The term that best completes the given sentence is assume.

Explanation of Solution

Free market explained that a market will work and perform comparatively well if government allows people to purchase and openly sell amongst themselves. It indicated that if consumers were able to freely share, self-interested market traders would adjust with each other, will lead to better results for markets. Or it can be said that in a market the customer depends on the manufacturer to produce the product that the customer wants and needs. The manufacturer also depends on customers to purchase their goods so that they can make a profit. So they are interdependent with each other since they depend on each other.

The correct answer is assume.

Economics Concept Introduction

Introduction: A system of market economy is system of an economic activity in which production investment and distribution decisions are controlled by the price signaling built up by supply and demand powers.