type of exchange involves exchange of goods on the basis of lsquo demand and supply rdquo ........

Sociology Preliminary Economic System and Society

___________ type of exchange involves exchange of goods on the basis of ‘ demand and supply ”

Barter exchange

Reciprocity

Market exchange

Redistribution

- Market exchange:

- This involves the exchange of goods and services based on demand and supply.

- Prices are determined in a competitive market.

- Driven by the forces of supply and demand.

- Example: Buying groceries from a supermarket.

- Barter exchange:

- A system of exchange where goods or services are directly exchanged without using money.

- It relies on the double coincidence of wants.

- Example: Trading a loaf of bread for a dozen eggs.

- Reciprocity:

- Involves mutual exchange where both parties provide goods or services to each other.

- Often based on social relationships rather than market forces.

- Example: Giving a gift and expecting a return favor.

- Redistribution:

- The collection of goods in a central place from where they are allocated or distributed.

- Often managed by a central authority.

- Example: Taxation and welfare systems.

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