8
QuizMultiple Choice

New Economic Theories — Quiz

Question 8 • Contemporary Studies

In a free market, supply and demand determines

Answer
A
the number and distribution of goods produced.
B
the factories and machines used to produce goods.
C
the type and number of goods produced.
D
the raw materials and tools used to produce goods.

Explanation

In a free market, consumers’ demand and producers’ supply influence which goods businesses make and how many they produce. So supply and demand determine the type and number of goods produced. The specific raw materials, tools, factories, and machines are choices about how production is carried out.

AI-written and checked against the verified answer.

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