Practice Quiz

CLEP Social Sciences

Category - Social Sciences

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In a competitive market, the prices of goods and services are determined by ­­­­­­­­­­_________ from consumers and _______ from producers.
  1. Demand; supply
  2. Supply; opportunity
  3. Supply; demand
  4. Demand; opportunity
Explanation
Answer - A - Prices are determined by consumer demand and producer supply.

Key Takeaway: In a competitive market, the prices of goods and services are determined by demand from consumers and supply from producers. This economic equilibrium that is based on the quantity of goods and services available will ultimately determine their prices.
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