One major characteristic of the price system is that
A) consumers together are the ones who ultimately decide what is produced.
B) individual sellers ultimately decide what is produced in the market.
C) competition among sellers is reduced.
D) all exchanges are regulated by the government.

Question

Quizplus · Accepted Answer

The price system operates on the principle of consumer sovereignty, meaning that consumers collectively determine what goods and services are produced through their purchasing decisions. Producers respond to these signals by producing more of what consumers demand and less of what they don't. This dynamic ensures that resources are allocated efficiently and goods and services are produced in the quantities and at the prices that consumers are willing to pay.

One Major Characteristic of the Price System Is That