In a market system,who ultimately determines what is produced?
A)Consumers
B)Business managers
C)Entrepreneurs
D)The government
E)Stockholders

Question

Quizplus · Accepted Answer

In a market system, the demand for goods and services is determined by consumers through their willingness to pay for them. This creates a market price which signals to businesses what goods and services consumers want to buy. Businesses then produce those goods and services to make a profit. Therefore, consumers ultimately determine what is produced in a market system. While managers, entrepreneurs, and stockholders play a role in the production process, their decisions are ultimately based on consumer demand. The government may also influence production through regulations and taxes, but they do not make the final determination of what goods and services are produced.

In a Market System,who Ultimately Determines What Is Produced