Home › CBSE Class 11 (Arts) › Economics › Perfect Competition › Adam Smith held that markets move toward equilib…
Adam Smith held that markets move toward equilibrium through the
Acentral plan
Bprice mechanism
Ctax system
Dcentral bank
Answer & Solution
Correct answer: B. price mechanism
Surpluses cut prices and shortages raise them, so price movements automatically remove imbalances.
Related questions
Neoclassical theory defines profit as revenue left after subtractingA firm sells 100 units at a price of Rs 12 with average cost Rs 9. Its economic profit isLong run economic profit depends on the prevalence ofUnlike competitive firms, monopolists areCompetition laws were created to stop powerful firms fromMarket equilibrium is the situation in which supply and demand forces areA price ceiling set by a manufacturer for its distributors is calledWhy do governments usually impose price ceilings?