Answer to Question #194848 in Economics for Nonhlanhla

Question

True or false: Prices bring about involuntary responses from buyers and sellers so that market equilibrium can be achieved.

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.