Which of the following mostly controls price in a market economy? A. Supply and demand (what people want, people will make) AKA the Market
B. Scarcity (not having enough)
C. Surpluses (having too much)
D. Inefficiency (waste)
Which of the following mostly controls price in a market economy?
Share
A. Supply and demand (what people want, people will make) AKA the Market
In a market economy, prices are primarily determined by the relationship between supply and demand. When demand for a product increases and supply remains the same, prices tend to rise. Conversely, if supply exceeds demand, prices generally fall. This interaction helps allocate resources efficiently in the economy.