Skip to main content
8.6G: Market-Oriented Theories
- Last updated
Save as PDF
- Evaluate the concept of the market-oriented theory of inequality
- When supply meets demand, prices reach a state of equilibrium and cease fluctuating.
- According to market-oriented theories, over time the low wages earned by agricultural laborers will induce more people to learn other skills, thus reducing the pool of agricultural laborers.
- The supply and demand model is commonly applied to wages, in the market for labor. The typical roles of supplier and consumer are reversed.
- supply and demand: An economic model of price determination in a market based on the relative scarcity or abundance of goods and services.
- equilibrium: In economics, the point at which supply equals demand and prices cease fluctuating.
- free market: Any economic market in which trade is unregulated; an economic system free from government intervention.