In a free market, who determines how much of a good will be sold and the price at which it is sold?

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Quizplus · Accepted Answer

In a free market, the quantity of a good sold and the price at which it is sold are mutually determined by both suppliers and demanders. Suppliers decide how much to produce and sell based on the price they can charge, while demanders decide how much of the good they want to buy based on the price they are willing to pay. The price and quantity of the good will eventually settle at a point where the quantity supplied equals the quantity demanded, known as the market equilibrium. The government typically does not have a role in determining the price or quantity of goods in a free market.

In a Free Market, Who Determines How Much of a Good