In a market economy, resources are allocated:

Question

Quizplus · Accepted Answer

In a market economy, resources are allocated by individual decision makers responding to market prices. The market forces of supply and demand determine the prices of goods and services, which in turn influence the decisions of producers and consumers about what to produce, how much to produce, and how much to consume. This decentralized process leads to efficient resource allocation and the production of goods and services that satisfy consumer preferences.

In a Market Economy, Resources Are Allocated