🎓 GED Exam Prep

In a market economy, the interaction of supply and demand primarily determines what?

A The level of government regulation
B The prices of goods and services
C The amount of income tax collected
D The total national debt

✓ Correct Answer: Option B

In a market economy, the forces of supply (how much producers are willing to sell) and demand (how much consumers are willing to buy) interact to set the equilibrium prices for goods and services.

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