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Functions of price mechanism

What are the various functions of price mechanism in a free market economy?

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Price mechanism is the point which equilibrates demand and supply within a market it is a mechanism of pricing the price mechanism is one which can allows the prices of goods and services to be decided by the interplay between demand and supply, there is no centralized price fixing.

The concept of price mechanism is that the free market when left to its own devices, will formulate fair prices of the goods or services on its own by the natural laws of supply and demand.

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