Answer: The interaction of supply and demand
Explanation:
The interaction of supply and demand determines the price and quantity of goods produced which is seen in the law of demand and supply. The law of demand states that as prices gets high, consumers or buyers buys less of the good and as prices get low, consumers demand more of the goods. The law of supply states that as prices get high producers supply more of the goods and as prices get low, producers supply less goods and services. Thus, at higher prices, producers supply more goods and services and vice versa.
