Economists use a ___________________ framework to explain how the prices and quantities of goods and services are determined in a free-market economic system.
A) opportunity
B) marginal cost
C) supply-and-demand
D) anti-monopoly

Question

Quizplus · Accepted Answer

The supply-and-demand framework describes how the interaction between buyers and sellers in a free-market system leads to the determination of prices and quantities of goods and services. Opportunity cost is a concept used in economics, but not specifically related to explaining prices and quantities in a free-market. Marginal cost is a concept used to describe the cost of producing one additional unit of a good or service, but it does not explain the overall market price and quantity. Anti-monopoly is a policy aimed at preventing or limiting the power of monopolies, but it is not a framework for explaining market prices and quantities.

Economists Use a ___________________ Framework to Explain How the Prices