IUPUI BUS-x100 Exam 1: Complete Q&A with Verified Solutions 2025/2026

An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices is called a _________ economy. A. product B. producer's C. command D. market E. planned - Market The market price of peaches is currently falling. In a free-market economy, the most likely explanation of this price change is that: A. the government has decided to set a lower price because sellers have been price gouging. B. there is a surplus in the market for peaches. C. the supply of money has increased. D. the equilibrium price is higher than the market price. E. there is a shortage of peaches in the market. - there is a surplus in the market for peaches