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How are the prices of goods and services determined in a market economy?

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A) by demand and supply


B) by consumers


C) by the government


D) by producers


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Answer:

D) by producers

Explanation:

  • In a market economy, the process of goods and services are determined by the consumers and producers' equilibrium of the quality and quantity of goods. As the law of demand in a decrease in the price of goods will reduce the quantity demanded.

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