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)
Question & Answer
Which of the following mostly controls price in a market economy?
1 Answer
Verified archiveA. 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.