How does a pure market economy answer the basic question of which goods and services should be produced?

A. Consumers decide what should be produced.
B. The government decides what should be produced.
C. Producers decide what should be produced.
D. The law of supply and demand drives this choice.



Answer :

Final answer:

In a pure market economy, consumers determine what goods and services should be produced, guided by the law of supply and demand.


Explanation:

In a pure market economy, the answer to the basic question of which goods and services should be produced is that consumers decide what should be produced. This is driven by the law of supply and demand, where the choices are influenced by consumer preferences and purchasing power.


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