ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The interaction of buyers and sellers in the market determines the supply and demand of the goods and services being exchanged and therefore the price and quality of the goods is also determined.

Detailed explanation-2: -In a mixed economy both market forces and government decisions determine which goods and services are produced and how they are distributed. In general, market forces prevail in mixed economies.

Detailed explanation-3: -Market economies work using the forces of supply and demand to determine the appropriate prices and quantities for most goods and services in the economy.

Detailed explanation-4: -Price is dependent on the interaction between demand and supply components of a market. Demand and supply represent the willingness of consumers and producers to engage in buying and selling. An exchange of a product takes place when buyers and sellers can agree upon a price.