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Making waves underground: India's first undersea rail tunnel takes shape · 9 hours ago IRDAI launches comic book series to simplify life insurance for consumers · 9 hours ago Fans 1, Productivity 0: How FIFA World Cup 2026 could trigger $17bn loss worldwide · 10 hours ago India's power sector set for strong FY27 growth on rising demand, capacity additions: Report · 11 hours ago ITR filing: Sold shares, property or crypto this year? Here's what you must know before filing your income tax return · 14 hours ago Punjab National Bank Q1FY27 net profit up 213% to Rs 5253 crore · 14 hours ago IDBI Bank Q1FY27 net profit rises 3.3% to Rs 2007 crore · 14 hours ago Nobody wants to wait on hold anymore. But can AI replace customer care? · 15 hours ago Pakistan to revise fuel prices daily; current account slips into $139 million FY26 deficit · 14 hours ago New money? India's currency might soon get a plastic makeover · 16 hours ago Textile sector to sew loose ends as FTAs kick in · 1 day ago NITI index: Gujarat, Maharashtra lead in wooing investors · 1 day ago Making waves underground: India's first undersea rail tunnel takes shape · 9 hours ago IRDAI launches comic book series to simplify life insurance for consumers · 9 hours ago Fans 1, Productivity 0: How FIFA World Cup 2026 could trigger $17bn loss worldwide · 10 hours ago India's power sector set for strong FY27 growth on rising demand, capacity additions: Report · 11 hours ago ITR filing: Sold shares, property or crypto this year? Here's what you must know before filing your income tax return · 14 hours ago Punjab National Bank Q1FY27 net profit up 213% to Rs 5253 crore · 14 hours ago IDBI Bank Q1FY27 net profit rises 3.3% to Rs 2007 crore · 14 hours ago Nobody wants to wait on hold anymore. But can AI replace customer care? · 15 hours ago Pakistan to revise fuel prices daily; current account slips into $139 million FY26 deficit · 14 hours ago New money? India's currency might soon get a plastic makeover · 16 hours ago Textile sector to sew loose ends as FTAs kick in · 1 day ago NITI index: Gujarat, Maharashtra lead in wooing investors · 1 day ago
Sunday, 19 Jul 2026 · IST
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General

What are the functions of price mechanism in a free market economy?

Price Mechanism

Price mechanism is the point, which equilibrates supply and demand within a market. It is a mechanism of pricing. The price mechanism is one, which allows the prices of good and services to be decided by the interplay between supply and demand. There is no centralized price fixing.

The price mechanism is the concept that the free market, when left to its own devices, will formulate fair prices of the goods or services on its own by the natural laws of supply and demand.

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