Question Which is true of how the market sets prices? (1 point) Responses Prices are set by the expected sales. Prices are set by the expected sales. Prices are set by how much consumers will pay. Prices are set by how much consumers will pay. Prices are set by the size and location of market outlets. Prices are set by the size and location of market outlets. Prices are set by doubling the equilibrium price. Prices are set by doubling the equilibrium price.
1 answer
The correct response is: Prices are set by how much consumers will pay.
In a market economy, prices are primarily determined by consumer demand. If consumers are willing to pay a certain price for a good or service, that helps establish the market price. Other factors can influence prices, but consumer willingness to pay is a key driver.
