Ultimately,the price of a good will be determined by the interaction of supply and demand in the marketplace.

Question

Quizplus · Accepted Answer

This statement is true. In a market economy, the price of a good is determined by the interaction of supply and demand. When there is a high demand for a good and a limited supply, the price will increase. When there is a low demand for a good and a surplus supply, the price will decrease. Ultimately, the price will adjust to a point where supply and demand are balanced.

Ultimately,the Price of a Good Will Be Determined by the Interaction