determine(s) the prices of goods in a market economy.

Only demand

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Only supply

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Demand and supply

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Solution

The correct option is C Demand and supply
The demand and supply together determine the prices in a market economy. It is based on the buyers' willingness to buy or the suppliers' willingness to sell.

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A market economy is an economic system in which production and prices are determined by unrestricted competition between privately owned businesses.

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