In a market economy, the amount of a good that is produced is primarily decided by the interaction of:
A)buyers and sellers.
B)all consumers.
C)producers and input suppliers.
D)producers and government planning committees.

Question

In a market economy, the amount of a good that is produced is primarily decided by the interaction of:
A)​buyers and sellers.
B)​all consumers.
C)​producers and input suppliers.
D)​producers and government planning committees.

Quizplus · Accepted Answer

In a market economy, the amount of a good that is produced is primarily decided by the interaction of buyers and sellers, which determines the price and quantity of the good exchanged in the market. Producers respond to consumer demand and adjust their production accordingly to maximize profits, while input suppliers provide the necessary resources to producers. The government may play a role in regulating the market or providing public goods, but it does not directly decide the amount of goods that are produced.

In a Market Economy, the Amount of a Good That