An economic system in which relative prices change to reflect changes in supply and demand for different commodities is known as a
A)socialist system.
B)communist system.
C)queuing system.
D)market system.

Question

Quizplus · Accepted Answer

A market system is characterized by the forces of supply and demand determining prices for goods and services. In this system, prices fluctuate according to changes in supply and demand, resulting in a dynamic allocation of resources. This differs from socialist and communist systems, which aim to centrally plan and control the economy, and queuing systems, which rely on waiting in line for goods and services rather than market-based allocation.

An Economic System in Which Relative Prices Change to Reflect