Final answer:
The market prices for apples and bananas are determined by both supply and demand, not solely by one or the other or by government regulations.
Step-by-step explanation:
The price of apples and bananas in the market is determined by the interaction of supply and demand, not by supply alone, demand alone, or government regulations. Supply is the amount of product available for sale, which can be affected by various factors such as the cost of inputs, productivity, technology, and number of sellers. On the other side, demand is influenced by consumer preferences, budget constraints, and other factors. Changes in either supply or demand lead to shifts in the equilibrium price and quantity, showcased by the demand and supply model curves on a two-dimensional diagram. This model is a fundamental tool for understanding how markets operate and how prices are set in a market economy without the need for government price setting.