Which of the following characterizes market mechanisms in a market economy?

Question

Quizplus · Accepted Answer

Market mechanisms in a market economy involve the interaction between price, quantity, supply, and demand, which helps to allocate resources as a result of firms and households interacting. Additionally, company and consumer sovereignty are important factors in a market economy as firms compete to provide goods and services that are valued by consumers. Therefore, all of the choices are correct characterizations of market mechanisms in a market economy.

Which of the Following Characterizes Market Mechanisms in a Market