From Command economy to Market economy

Reasons Increase in living standard greater opportunities for economic growth As government got slightly influence in the intervention of the market, producers are free to raise or lower their prices according to the demand of the consumers - encourages the incentives in both sides, as producers are able to produce in competitive prices and consumers have wider varieties of choices. Wise and better use in recourses Responses from the consumers give price signals to sellers: …

…or individuals can participate in the capital market More demonstration of information: People will be more concerned about the comparisons to other markets or countries Better quality and quantity of goods: More competition Firms are individuals, they do their best to benefit themselves and so the resources are more fully used Suppliers know more about what customers want, more interaction GDP will increases: The increase in efficiency, and better quality of goods can increase income.