In a market economy, supply and demand are important because they are direct policy tools used by government agencies to regulate the economy. illustrate when an market is in equilibrium, but they are not helpful when a market is out of equilibrium. can be used to predict the impact on the economy of various events and policies. All of the above are correct.

can be used to predict the impact on the economy of various events and policies.

Explanation:

Market demand curve can be determined by the horizontal summation of the various quantities for which, each buyer or consumer in a market is willing to pay for at different prices.

A market demand curve is used to graphically represent the quantity of goods demanded by all the buyers or consumers at different price points. Thus, the market demand curve is downward sloping due to the fact that as the price of a product increases, the quantity demanded by the consumer decreases.

Demand and supply forms the core of market forces that determines prices and quantity.

In a market economy, supply and demand are important because they can be used to predict the impact on the economy of various events and policies.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; whoever is willing and able to pay the price;