The most basic investigative tool of economics is the
A)concept of scarcity.
B)mechanism of supply and demand.
C)coordination and trade syndrome.
D)inflation-unemployment trade-off.
E)regulation of business.

Question

Quizplus · Accepted Answer

The mechanism of supply and demand is the most basic investigative tool of economics because it explains how prices are determined in a market economy through the interaction of supply (how much of a good or service is available) and demand (how much of a good or service people want). This fundamental concept is central to understanding economic behavior and market operations.

The Most Basic Investigative Tool of Economics Is the