Question

Price mechanism acts as a coordinating and organising force in a free-enterprise economy.

• A. True
• B. False

Answer 1

The correct option is A True

Price mechanism refers to the mechanism where price directs the flow of goods and services in the market as it directs the supply by the production sector i.e supply will increase if price increases and vice-versa and the demand sector i.e demand will increase if price decreases and vice-versa. Therefore, it coordinates and organize activities in a free enterprise economy.