HISTORY
THE INDUSTRIAL REVOLUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What is a key principle of a market economy?
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The means of production are controlled by the state.
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Supply and demand determine production and price.
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Employment opportunities are determined by social class.
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Businesses are owned by the people collectively.
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Explanation:
Detailed explanation-1: -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-2: -The law of supply and demand combines two fundamental economic principles describing how changes in the price of a resource, commodity, or product affect its supply and demand. As the price increases, supply rises while demand declines. Conversely, as the price drops supply constricts while demand grows.
There is 1 question to complete.