A friend of yours asks you why market prices are better than government-determined prices.What do you say?

Question

Quizplus · Accepted Answer

Market prices are determined through the interaction of supply and demand forces. This process generally reflects both the value of a good to society (as expressed in the willingness of buyers to pay for it) and the cost of making it (as expressed in the willingness of sellers to sell it at a particular price). In contrast, government-determined prices are often based on factors other than supply and demand, such as political considerations or attempts to protect certain industries. As a result, they may not accurately reflect the true value or cost of a good, and can lead to unintended consequences such as shortages or surpluses.

A Friend of Yours Asks You Why Market Prices Are