In a capitalist system, prices are controlled by:
A. the law of supply and demand.
B. the Federal Reserve Board.
C. the consumer Price Index.
D. monetary policy.
Answer (2)
A) the law of supply
i am in a business class about to go to college to major in business :)
In a capitalist system, prices are mainly controlled by the law of supply and demand, where prices change based on the quantity supplied and consumer demand. When demand is high and supply is low, prices rise, and vice versa. Therefore, option A, 'the law of supply and demand,' is the correct answer.
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