The main economic influence that determines prices is:
A) the stock market.
B) interest rates.
C) employment.
D) government spending.
E) supply and demand.

Question

Quizplus · Accepted Answer

The main economic influence that determines prices is the law of supply and demand. When there is high demand and limited supply, prices will increase. When there is low demand and excess supply, prices will decrease. This principle applies across a wide range of industries and products, from commodities like oil and gold to consumer goods like electronics and clothing. While other economic factors like interest rates and government spending can impact the economy and ultimately affect prices, the immediate and direct influence on prices is driven by supply and demand.

The Main Economic Influence That Determines Prices Is