One of the most important characteristics of the price system is that
A) consumers are the ones who ultimately decide what is produced.
B) politicians are the ones who ultimately decide what is produced.
C) competition among sellers is reduced.
D) all exchanges are regulated by the government.

Question

Quizplus · Accepted Answer

The price system operates based on the principle of demand and supply, and consumers determine the demand for different goods and services through their purchasing decisions. Businesses respond to this demand by producing goods and services that consumers are willing to purchase, thereby determining what is produced in the economy.

One of the Most Important Characteristics of the Price System