question archive One of the principles of economics is that in a market system, price is determined by: a) The amount of labor hours required to produce the item
One of the principles of economics is that in a market system, price is determined by: a) The amount of labor hours required to produce the item
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One of the principles of economics is that in a market system, price is determined by:
a) The amount of labor hours required to produce the item.
b) The cost of the energy used to produce the item.
c) The government.
d) The interaction between suppliers and demanders.
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The correct option is d) The interaction between suppliers and demanders.
In a free market, prices are determined where the supply and the demand for a product are the same. There is generally one such price at which the number of units produced is the same as the number of units demanded and this is the price at which units are sold in the free market.
