Answer to Question #193594 in Economics for Mike

Question

Prices bring about involuntary responses from buyers and sellers so that market 

equilibrium can be achieved.

[1] True

[2] False

Answer 1

Interaction between buyers and sellers determines prices in market economies through the invisible forces of supply and demand. When a market is in equilibrium, the quantity that buyers are willing and able to buy (demand) is equal to the quantity that sellers are willing and able to produce (supply).

So, the statement is true and the correct answer is [1].