Free market (Contextual Header)
A977
Of the three conditions that explain why a free market is efficient, which condition, or conditions, cease to hold, in the case of a tariff on imported goods? Which condition, or conditions, continue to hold, even in the case of a tariff on imports?
Free market (Contextual Header)
The free market refers to an economic system where there is little or no control by the government since laws of supply and demand control the economic system. Free markets are characterized by both spontaneous and decentralized orders in such that individuals are the ones who make decisions of the economy. The best characteristics of a free market economy are that there are no forced transactions.
Of the three conditions that explain why a free market is efficient, which condition, or conditions, cease to hold, in the case of a tariff on imported goods? Which condition, or conditions, continue to hold, even in the case of a tariff on imports?
For the case of imported goods (Goods or services purchased in one country but a different country is the one that produces it), the condition which typically ceases to hold the tariff is where the buyers in more significant measures buy the supply of goods. They have a more substantial concern and willingness to make payments.
The other condition which typically continues holding even after the case of tariff on the imports is the condition where the supply of goods is sold by the sellers who are considerate. They have the lowest rates and costs.