Question

8. The market system is a method of (a) making economic decisions by centralplanning b) communicating and coordinating economic 15. Wh ducing decisions (e) promoting specialization, but not division of labor (d) allocating money, but riot economic profils or losses O ver

Answer 1

The market system is a method of b) communicating and coordinating economic decisions.

It is true for market system.

A decrease in consumer demand for a product will sooner or later result in a) a decrease in the profits of firm in the industry.

When the demand for that product falls, ultimately less of supply will be made, and less profit will be made by the firm.