A price system is an economic system in which
A)resource allocation is decided by bureaucrats.
B)commands from government planners are used to answer the three basic economic questions.
C)prices for all basic commodities are set by federal mandate.
D)prices change to reflect changes in supply and demand for different commodities.

Question

Quizplus · Accepted Answer

A price system is characterized by prices that change based on the interaction of supply and demand in the market. This allows for resources to be allocated efficiently based on the preferences of buyers and sellers, without the need for central planning or government intervention in setting prices.

A Price System Is an Economic System in Which