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In a capitalistic economy what to produce depends on—
  • a)
    governments is policy
  • b)
    consumer’s preference
  • c)
    profits of firm
  • d)
    none of these
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
In a capitalistic economy what to produce depends on—a)governmen...
The demands and preferences of consumers. Producers will produce goods and services that they believe will be profitable and in high demand. The market will determine the price of these goods and services based on supply and demand. Therefore, what to produce in a capitalistic economy is primarily determined by consumer demand and the profit potential of the product or service.
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Community Answer
In a capitalistic economy what to produce depends on—a)governmen...
Taste and preferences of consumer is more important
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