In a free market price is determined by __________.

Interplay of market forces

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Intensity consumer demand

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Supply capacity of sellers

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Producer associations.

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Solution

The correct option is A Interplay of market forces
In a free market the price is determined by interplay of market forces. In a free market the market does not get influence due to a single buyer or a seller, because there are many buyers and sellers. In free market the sellers are price takers. Price is determined by the equilibrium of demand and supply. The price at equilibrium is the market price.

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