The essential coordinating mechanism of a free- market economy is

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Quizplus · Accepted Answer

The price system is the central coordinating mechanism of a free-market economy. Prices send signals to both producers and consumers indicating what goods and services are in demand and at what quantities and prices they should be produced and consumed. This way, resources are allocated efficiently in response to market demand and supply, without the need for centralized control or planning.

The Essential Coordinating Mechanism of a Free- Market Economy Is