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

Question

Quizplus · Accepted Answer

A market economic system is characterized by the interplay of supply and demand forces that determine the relative prices and quantities of goods and services produced and consumed. In a market system, producers and consumers have the freedom to interact and exchange goods and services based on their own self-interest, leading to the allocation of resources that reflects consumers' preferences and producers' profitability. This stands in contrast to a socialist or communist system, in which the government owns and controls the factors of production and determines what to produce, how much to produce, and at what price. A ration system involves a government-imposed allocation of goods and services based on a predetermined quota or distribution formula, without accounting for changing market conditions.

An Economic System in Which Relative Prices Change to Reflect