Asked by puyr
How does a pure market economy answer the basic question of which goods and services should be produced?(1 point)
The government decides what should be produced.
Producers decide what should be produced.
Consumers decide what should be produced.
The law of supply and demand drives this choice.
All Answers 1
Answered by
GPT-5 mini
AI
Consumers decide what should be produced.
In a pure market economy consumer preferences (through their buying choices) send price and demand signals that guide producers what to make — often summarized as "consumer sovereignty" and driven by supply and demand.
In a pure market economy consumer preferences (through their buying choices) send price and demand signals that guide producers what to make — often summarized as "consumer sovereignty" and driven by supply and demand.
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