Question

What is the type of economy in which prices are determined by the buying and selling decisions of individuals in the marketplace?

1) Command economy
2) Market economy
3) Mixed economy
4) Traditional economy

Answer 1

A market economy is the type of economy in which prices are determined by the buying and selling decisions of individuals in the marketplace.

Step-by-step explanation:

A market economy is the type of economy in which prices are determined by the buying and selling decisions of individuals in the marketplace.

In a market economy, most of the decisions about what to produce, how to produce it, and who receives it are made privately by consumers and firms.

Examples of market economies include the United States, Canada, and Germany.