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How does a market system prevent people from getting as many goods and services

ID: 1155389 • Letter: H

Question

How does a market system prevent people from getting as many goods and services they wish? the market system allocates good and services to those who are able to pay for those products and therefore income is a limiting factor governments interfere with the market mechanism to influence the allocation of goods and services the government imposes taxes on those who earn beyond a certain amount of income in a market system, firms base prices uniquely on the costs of input prices will determine who will get goods and services product a. b. C. d.

Explanation / Answer

"A"

In the market system, allocates good and services to those who are able to pay for those products and therefore income is the limiting factor. IN the market economy, the price of the good is decided by the demand and supply. At the given price a person can buy as many goods as they want. Its the income and the utility they are getting from that product that becomes the limiting factor.   

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