Question

When the interaction of producers and consumers determine the prices of goods and services in an economy, it is:

Answer 1

Answer: Market economy

Step-by-step explanation:

A market economy is a form of economic system whereby the economic decisions that are taken in the market and the prices of goods and services in the market are done through the interactions that takes place between the individuals and the firms. In this economy, there is little or no interventions from the government.