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, prices are determined by the forces of supply and demand. This means that when demand for a product increases, prices tend to rise, and when supply of a product increases, prices may fall. This system allows consumers and producers to make choices based on their preferences and needs, leading to efficient resource allocation.
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