In a pure market economy, the basic question of which goods and services should be produced is answered by the law of supply and demand. Producers respond to the preferences and purchasing behavior of consumers, and through this interaction, they decide what to produce based on what is in demand.
How does a pure market economy answer the basic question of which goods and services should be produced?(1 point) Responses Producers decide what should be produced. Producers decide what should be produced. The law of supply and demand drives this choice. The law of supply and demand drives this choice. The government decides what should be produced. The government decides what should be produced. Consumers decide what should be produced.
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