Scenario: Learning the American Way
Sergei Chernovl is a Russian exchange student.To learn more about how a market economy functions,Sergei is writing a research paper comparing business in Russia with business in the North America.
-Sergei knows that prices in a market economy are determined by the interplay of ________.

Question

Quizplus · Accepted Answer

In a market economy, prices are determined by the interplay of supply (what producers are willing and able to offer for sale) and demand (what consumers are willing and able to purchase). Choices A, B, and C do not accurately reflect the factors that determine prices in a market economy.