Answer:
In a free market economic system, consumption is determined based on the goods and services that make use of the most efficient use of resources and production factors such that consumers encourage producers to produce what they want as such consumer spending is equal to the sum of spending for essential commodities and the extra spending based on disposable income which reflects the wants, or trend of the consumers and therefore, the future pattern of production
Explanation:
Answer:
In a free market economic system, consumption is determined based on the goods and services that make use of the most efficient use of resources and production factors such that consumers encourage producers to produce what they want as such consumer spending is equal to the sum of spending for essential commodities and the extra spending based on disposable income which reflects the wants, or trend of the consumers and therefore, the future pattern of production
Explanation:
