If a good or service is sold in a competitive market free of government regulation, then the price of the good or service adjusts to balance supply and demand.

Question

Quizplus · Accepted Answer

In a competitive market free of government regulation, prices adjust due to the forces of supply and demand. When demand increases, prices rise, encouraging more supply. Conversely, if supply exceeds demand, prices fall, reducing supply or increasing demand until equilibrium is reached.

If a Good or Service Is Sold in a Competitive