Which characterizes the free-market system as consumers influence producers and producers influence consumers? A. a built-in process of growth only two kinds of players B. a tendency toward equality C. a circular flow of influences

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Business

Grant Pineda

10 June, 12:29

Which characterizes the free-market system as consumers influence producers and producers influence consumers? A. a built-in process of growth only two kinds of players B. a tendency toward equality C. a circular flow of influences

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Answers (1)

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Trystan Bean · Answer 1

C. a circular flow of influences

Explanation:

The free market system is an economic system in which the prices for products and services is decided by supply and demand without the intervention of the government. As this system is based in the supply and demand, this forces infuence each other which generates a circular flow of influence. According to this, the answer is that the free market is characterized by a circular flow of influences.