Question

ices direct economic activity in a market economy by a. influencing the actions of buyers and sellers. b. reducing scarcity of the goods and services produced. c. reducing opportunity cost of goods and services produced. d. allocating goods and services in the most equitable way.

Answer 1

Answer: a. influencing the actions of buyers and sellers.

Explanation: Price is the amount a good or service is going for in the market. It direct an economic activity in a market economy by influencing the actions of buyers and sellers.

Price controls the market economy because the decisions of buyers and sellers are dependent on the prices of the available goods and services.

What are the decision? What to buy, where to buy, what qty to buy etc.