Figure 5.2. The figure shows the supply and demand curves of a firm.
-Which of the following possibly determines the allocation of goods and services in a free market?

Question

​Figure 5.2. The figure shows the supply and demand curves of a firm. 
-Which of the following possibly determines the allocation of goods and services in a free market?​

Quizplus · Accepted Answer

In a free market, the allocation of goods and services is primarily determined by the willingness and ability of consumers to pay for the product. This is reflected in the demand curve of the firm in Figure 5.2, as the quantity demanded increases as the price decreases. The other choices may also affect the firm's decisions, but they do not directly determine the allocation of goods and services in a free market.

​Figure 52

Figure 52