In a pure capitalist system what determines the price of goods and services?
A)the government
B)supply and demand
C)the actual cost of production
D)the International Monetary Fund

Question

Quizplus · Accepted Answer

In a pure capitalist system, the price of goods and services is determined by the forces of supply and demand. This means that prices will fluctuate based on how many people want a particular good or service and how much of that good or service is available. As demand goes up, prices will go up, and as supply goes up, prices will go down. The government, the actual cost of production, and the International Monetary Fund do not play a direct role in determining prices in a pure capitalist system.

In a Pure Capitalist System What Determines the Price of Goods