supply and demand determines prices levels for goods and services in a market economy.
A market economy is characterized by the free entry and exit of firms, that is, it is an economic system based on competition. In this context, firms compete for the market through price practices. Consumers will buy from the firms that practice the lowest price and firms that charge a higher price will be eliminated by the competition.
When the market places a price where the supply of goods and services will equal the demand for goods and services, the economy will be in equilibrium.
Answer:
Also, since most of the fighting in the Civil War was done in the South, there was <u>much damage to the land and to property.</u> As a result, the South had to be <u>rebuilt</u> after the Civil War ended. This led to a <u>diversification of the southern economy as more industries were built in the South</u>.
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By declaring themselves an independent nation, the American colonists were able to confirm an official alliance with the Government of France and obtain French assistance in the war against Great Britain. ... Independence would be necessary, however, before French officials would consider the possibility of an alliance.
