In a market system, the distribution of goods and services among consumers is largely determined by
A) the willingness and ability of consumers to pay the prices.
B) whoever needs the goods and services the most.
C) whoever has the closest connection to ﬁrms and the government.
D) a random factor that is almost impossible to predict.

Question

Quizplus · Accepted Answer

In a market system, prices are determined by supply and demand. Consumers who are willing and able to pay the prices set by the market will be the ones who are able to obtain the goods and services. This is because firms will produce goods and services that are in demand and that consumers are willing to pay for, while consumers will purchase the goods and services that they value the most and are able to afford. Therefore, the distribution of goods and services is largely determined by the willingness and ability of consumers to pay for them.

In a Market System, the Distribution of Goods and Services