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Market Economy
An economic system where supply and demand from consumers and businesses dictate the production and pricing of goods and services.
Supply and Demand
Fundamental economic model based on the idea that the price and quantity of a good or service is determined by the availability (supply) and desire (demand) of that good or service.
Rationing Mechanism
A system used to allocate scarce goods and services using criteria other than price.
Surplus
An excess of supply over demand, resulting in an accumulation of unsold products or unused resources.
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