Market economies rely on which of the following to allocate scarce resources?

Question

Quizplus · Accepted Answer

In a market economy, the relative prices of goods and services are determined by supply and demand. This guides producers to allocate resources towards the goods and services that consumers are willing to pay the highest prices for. As a result, scarce resources are allocated towards the production of goods and services that are most in demand, maximizing efficiency and productivity.

Market Economies Rely on Which of the Following to Allocate