Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system.
A)opportunity
B)marginal cost
C)supply-and-demand
D)anti-monopoly
E)none of the above

Question

Quizplus · Accepted Answer

The supply-and-demand framework is used by economists to explain how the prices and quantities of goods and services are determined in a free-market economic system. This framework involves analyzing the forces of supply, which represents the willingness of producers to offer goods and services for sale at various prices, and demand, which represents the willingness of consumers to buy goods and services at various prices. Through the interaction of these forces, a market-clearing price and quantity emerge.

Economists Use a ___________________ Framework to Explain How the Prices