Question

1. the ______ system gives both producers and consumers important information they use in making decisions about how to allocate their resources and is determined by forces of supply and demand.

raw materials
price
profit
none of the above

Explanation:

The price system (or price mechanism) is determined by supply and demand. It signals producers (e.g., higher prices encourage more production) and consumers (e.g., higher prices reduce consumption) to allocate resources. Raw materials are inputs, profit is a result of production, neither fits the description.

Answer:

B. price