In a free market, the price of goods is set by A. government officials.
B. the consumer.
C. the producer.
D. workers and owners.
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In a free market, the price of goods is set by A. government officials.
B. the consumer.
C. the producer.
D. workers and owners.
The correct answer is B. the consumer.
In a free market, prices are primarily determined by the forces of supply and demand. Consumers play a vital role since their preferences and purchasing choices influence how much producers are willing to supply and at what price. If consumers are willing to pay more for a good, the price tends to rise; if they demand less, the price tends to fall. This dynamic interaction ultimately sets the price of goods in the market.
The correct answer is B. the consumer.
In a free market, the price of goods is primarily determined by supply and demand. Consumers play a crucial role as their preferences and buying behavior influence how much of a product producers are willing to supply at various price points. When demand increases, prices tend to rise, and when demand decreases, prices tend to fall.