Whenever a good trades in a competitive market, the ________ determines the value of the good.
A)demand
B)cost
C)supply
D)price

Question

Quizplus · Accepted Answer

In a competitive market, the price of a good is determined by the interaction of supply and demand. Demand refers to the amount of the good that consumers are willing and able to buy at a given price, while supply refers to the quantity of the good that producers are willing and able to sell at a given price. The point where supply and demand intersect is known as the equilibrium price, which determines the value of the good in the market. Thus, the correct answer is D) price.

Whenever a Good Trades in a Competitive Market, the ________