Question

In a market system, scarce goods are allocated through the operation of fixed prices that are determined by consumers and producers acting in the public interest.estimated prices that are determined by consumers and producers acting in their own self-interest.market prices that are determined by consumers and producers acting in the public's interest.

Answer 1

Answer:

The correct answer is: market prices that are determined by consumers and producers acting in their own self-interest.

Explanation:

In a market system, the price of a good is determined by the intersection of demand for goods by consumers and the supply of goods by the producers. The price is determined at the point where the market forces of demand and supply are equal.

The producer is trying to maximize its profit while the consumer is trying to maximize its utility. Both are working for their self-interest and in this way are able to allocate scarce resources through the working of the market system.