ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a signal for consumers to purchase less
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a signal for producers to manufacture less
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a set of compromises between buyers and sellers
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a set of compromises between the government an citizens
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Detailed explanation-1: -Interaction between buyers and sellers determines prices in market economies through the invisible forces of supply and demand. When a market is in equilibrium, the quantity that buyers are willing and able to buy (demand) is equal to the quantity that sellers are willing and able to produce (supply).
Detailed explanation-2: -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.
Detailed explanation-3: -The equilibrium priceThe price in a competitive market at which the quantity demanded and the quantity supplied are equal, there is neither a shortage nor a surplus, and there is no tendency for price to rise or fall. (or market-clearing price) is the price where the intentions of buyers and sellers match.
Detailed explanation-4: -The correct option is: C) The decisions made by producers and consumers drive all economic choices. Explanation: A free-market economy is perceived as one of the economic systems where the demand and supply of the products and services are determined by labor and production instead of the government.