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A planned economy is regulated and controlled by the government who has complete control of all resources and production. A mixed market economy incorporates elements of both planned and market environments. Supply and demand play an integral part in a market economy. The law of supply and demand states that the lower the cost of a good or service, the more consumers will purchase. The higher the cost of the good or service the less consumers will purchase, however the supplier will produce more. There are factors such as laborers, capital, entrepreneurs, physical resources and information resources that can effect demand and supply...
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Common topics in this essay:
- Fiscal Policies
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