Under a free economy, prices are: a. Regulated b. Determined through a free interplay of demand and Supply c. Partly regulated d. None of these
Understand the Problem
The question is asking about the nature of prices in a free economy and the mechanisms that determine those prices. It involves concepts of economics, specifically focusing on demand and supply.
Answer
Determined through a free interplay of demand and supply
Under a free economy, prices are determined through the free interplay of demand and supply.
Answer for screen readers
Under a free economy, prices are determined through the free interplay of demand and supply.
More Information
In a free economy, the government does not interfere with the determination of prices. Instead, they result from the natural interaction of buyers and sellers in the market.
Tips
A common mistake is to assume that prices in a free economy might be partly regulated or controlled by some entity, but in true free market systems, prices are entirely determined by supply and demand.
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