In a market economy, what groups decide the amount of a good that is produced?
A) buyers and sellers
B) producers and input suppliers
C) all consumers
D) producers and government planning committees

Question

Quizplus · Accepted Answer

In a market economy, the amount of a good that is produced is determined by the interaction of buyers and sellers through the forces of supply and demand. Producers supply goods based on the demand from buyers, and buyers demand goods based on their preferences and ability to pay. This market mechanism determines the quantity of goods produced and consumed in the economy.

In a Market Economy, What Groups Decide the Amount of a Good