In a free market the combination of products produced will be determined by ?
Correct answer: A. Market forces of supply and demand
- A. Market forces of supply and demand
- B. The government
- C. The law
- D. The public Sector
Explanation
In a free market, consumer demand and producer supply interact through prices to determine which products are made and in what quantities. Government or public-sector direction is characteristic of a controlled rather than a purely free market.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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