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The Theory That, in a Free Market Economy Prices Are Determined by the Interaction of Supply and Demand. True False

Problemas

The theory that, in a free market economy prices are determined by the interaction of supply and demand. True False

Roztwór

Ricardo élite · Tutor durante 8 años
Weryfikacja ekspertów
4.6 (247 Votos)

Respuesta

True

Explicación

The statement is describing the basic principle of a free market economy, which is that prices are determined by the interaction of supply and demand. In a free market, the laws of supply and demand are free from any intervention by a government, a price-setting monopoly, or other authority. It is the invisible hand of the market that determines the prices of goods and services. Therefore, the statement is true.