What are the forces that make market economies work?

Question

Quizplus · Accepted Answer

Market economies work based on the forces of demand and supply. Demand represents the quantities of goods or services that consumers are willing and able to buy at a particular price while supply represents the quantities of goods or services that firms are willing and able to sell at a particular price. The interaction between demand and supply determines the equilibrium price and quantity of goods or services in the market, which allocates resources efficiently and signals to producers the level of output needed to maximize profits.

What Are the Forces That Make Market Economies Work