Market Equilibrium: Why is it Important that Prices are Flexible in Our Economy?

MARKET EQUILIBRIUM
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The flexibility of prices within an economy is very important since it helps maintain the law of demand and supply, which is healthy for the economic sustainability of the people as well as the other major players in it. Price flexibility is important for a free market, since it helps in ensuring that the people are well provided with the goods and services that they need, at a more or less fair price that is a general reflection of its value. For example, a good or service that has got a high demand within a given free market will result in an increase in its prices (Salvatore, 2016).
This will in turn motivate the entrepreneurs and other producers of these goods to manufacture or produce e...