🎓 GED Exam Prep

In a market economy, what is the primary factor that determines the price and quantity of goods and services?

A Government regulations
B The interaction of supply and demand
C Production costs alone
D International trade agreements

✓ 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 establish equilibrium prices and quantities for goods and services.

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