In a market economy, supply and demand determine

Question

Quizplus · Accepted Answer

In a market economy, producers determine the quantity of each good to produce based on the demand from consumers. The price of the good is then determined by the intersection of the supply curve (the quantity of the product that producers are willing to supply at different prices) and the demand curve (the quantity of the product that consumers are willing to buy at different prices). This means that both the quantity of each good produced and the price at which it is sold are determined by supply and demand.

In a Market Economy, Supply and Demand Determine