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An example of the market economy is:

A. The high demand for a product drives down the price.
B. A product is provided in the store and no one wants to buy it.
C. The high demand for a product drives up the price.
D. A product is produced in such large quantities that the price rises.

1 Answer

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Final answer:

In a market economy, the high demand for a product can drive down the price.

Step-by-step explanation:

In a pure market economy, the price of goods and services is determined by the demand and supply in the market. One example of a market economy is when the high demand for a product drives down the price. This happens because as more people want to buy the product, sellers are motivated to lower the price in order to attract more buyers. For instance, if there is a popular toy that everyone wants, but there is a limited supply, the price of the toy may increase. On the other hand, if there is a surplus of a product that nobody wants to buy, the price may decrease as sellers try to entice buyers.

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