When a commodity market operates without government interference, commodities are distributed through_______
Answer Details
When a commodity market operates without government interference, commodities are distributed through the operation of price mechanism. This means that the price of the commodity is determined by the interaction of supply and demand in the market, without any intervention from the government. As the demand for a commodity increases, the price of the commodity increases, leading to a decrease in demand and an increase in supply. On the other hand, when the supply of a commodity increases, the price decreases, leading to an increase in demand and a decrease in supply. In this way, the price mechanism helps to ensure that commodities are distributed efficiently, with those who are willing to pay the most for the commodity receiving it first.