Microeconomics: Principles, Problems, & Policies, 20th Edition

Published by McGraw-Hill Education
ISBN 10: 0077660811
ISBN 13: 978-0-07766-081-9

Chapter 2 - The Market System and the Circular Flow - Discussion Questions: 2

Answer

The answer is below.

Work Step by Step

In a free market, there are few restrictions on entering and leaving the market. This is why it is called a free market: because people are allowed to enter and leave as they desire, the only thing controlling the market is largely the supply and demand curve, which impacts whether or not it is profitable to enter a market.
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