In which type of economy do the forces of supply and demand typically drive prices? A. a market economy
B. a traditional economy
C. a planned economy
D. a command economy
In which type of economy do the forces of supply and demand typically drive prices?
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The correct answer is A. a market economy.
In a market economy, the forces of supply and demand operate freely, determining the prices of goods and services. Buyers and sellers interact in the marketplace, where prices fluctuate based on consumer preferences and available resources. In contrast, traditional, planned, and command economies rely on external factors like customs, government directives, or central planning rather than the market forces of supply and demand.