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)

Question

Responses

a traditional economy
a traditional economy

a command economy
a command economy

a mixed economy
a mixed economy

a market economy

Answer 1

The correct response is:

a market economy

In a market economy, price signals determined by supply and demand forces are the primary factors guiding the production of goods and services.