Question
In a market economy, prices are established by
Responses
A consumers and labor unions.consumers and labor unions.
B decree of government agencies.decree of government agencies.
C the interaction of supply and demand.the interaction of supply and demand.
D businesses which buy and sell the products.
Answers
GPT-4o mini
C **the interaction of supply and demand.**
In a market economy, prices are primarily determined by the interaction between supply and demand. When demand for a product increases and supply remains constant, prices tend to rise. Conversely, if supply increases and demand remains constant, prices tend to fall. This dynamic interaction is a fundamental principle of market economies.
In a market economy, prices are primarily determined by the interaction between supply and demand. When demand for a product increases and supply remains constant, prices tend to rise. Conversely, if supply increases and demand remains constant, prices tend to fall. This dynamic interaction is a fundamental principle of market economies.