Is the mechanism of the free market that is allocated to the various resources to optimize efficiency? On the basis of incentives of practitioner to make a profit as high as possible. A simple principle is what the product or service that people want more, but there is not enough capacity, then prices will go up, which will make them more profitable manufacturers. Entrepreneurs will also expand production capacity added in order to make a profit is that no one is going to tell it to do. Conversely, if the price is too much, then the employer would be loss of production and a reduction in the demand for, and production and prices back to reasonable point without someone to interfere or to make.
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