how does a pure market economy answer the basic question of which goods and services should be produced? (1…
how does a pure market economy answer the basic question of which goods and services should be produced? (1 point)\nthe law of supply and demand drives this choice.\nproducers decide what should be produced.\nthe government decides what should be produced.\nconsumers decide what should be produced.
Answer
Brief Explanations:
In a pure market economy, the law of supply and demand is the main - driving force. Producers respond to consumer demand signals in the market. The government has minimal or no intervention in production decisions. Consumers' preferences and purchasing power create demand, and producers aim to meet this demand to maximize profits. So, the law of supply and demand determines what goods and services are produced.
Answer:
The law of supply and demand drives this choice.