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GREYUIT [131]
3 years ago
13

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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