Geography High School

In a market economy, what determines for whom goods are produded?
OA. government and the market
OB. politicians and the bureaucracy
OC. supply and demand
OD.
custom and tradition
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Answer 1

Answer:

C. supply and demand

Explanation:

In the system of the market economy, the decisions about economic processes are based on the of the people (how much they need and buy something) and the needs of the supply (needs for natural resources, goods, and things which can be bought).

A market economy also means the pricing of the goods is based on the demand for them. If products are not in demand and bought by the customers, it’s the price and supply goes down. Once the demand for the product grows, the profit is made.

The final goal is the price which is equilibrium, meaning goods are supplied exactly by the demand and with the fixed price that makes the process possible. This equilibrium should also provide the profit for the supplier.

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