Hi can get some help on this question please

Social Studies

1 answer:

pochemuha3 years ago

8 0

<u>Answer: </u>

The statement that best explains how a free-market system has a circular flow of influences is that consumer decisions affect producers, and producer decisions affect consumers.

<u>Explanation: </u>

In a free-market, the needs and wants registered by the potential customer is considered as demand.
This demand, along with some other factors related to feasibility, governs the supply of products that come into the market.
The customers, in turn, have to choose from what the producer has offered.
Hence, the cycle of consumer and producer decisions affecting each other continues.

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