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30 December, 10:45

In which type of economy do the forces of supply and demand typically drive prices?

a. a market economy

b. a traditional economy

c. a planned economy

d. a command economy

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Answers (1)
  1. 30 December, 11:01
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    The kind of economy that is determined by supply and demand is a market economy - answer a) is the correct one

    In a command and planned economies the government decides over prizes and production (the two are roughly synonymous).

    A traditional economy is an economy based on exchange, not money.
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