In the free market,the main signal to the market that brings price to equilibrium comes from:

Question

Quizplus · Accepted Answer

The main signal that brings price to equilibrium in the free market is the surplus or shortage of output for sale. This is because if there is a surplus of a product, then the price will decrease as sellers compete for buyers, and if there is a shortage, the price will increase as buyers compete for the limited supply. This is the mechanism of supply and demand, which is the foundation of the free market system. Government regulators, professional middlemen and traders, and trading computer networks can all have an impact on prices, but they are not the main signal that brings prices to equilibrium.

In the Free Market,the Main Signal to the Market That