Question

In which economic system are price signals, resulting from supply and demand forces, the only determining factor for the goods and services that the economy produces?(1 point)
Responses

a mixed economy
a mixed economy

a traditional economy
a traditional economy

a market economy
a market economy

a command economy
a command economy

Answer 1

a market economy

In a market economy, price signals from supply and demand determine what goods and services are produced; command economies use central planning, mixed economies combine both, and traditional economies rely on customs.