Correct Answer: Option C

Explanation

In a free market economy, resources are allocated through the price mechanism. The price mechanism is the system in a free
market economy where decisions about what to produce, how to produce, and for whom to produce are made based on the prices
of goods and services. Prices are determined by the forces of supply and demand. If demand for a product increases, its price will
rise, which will incentivize producers to produce more of that product. Conversely, if demand for a product decreases, its price
will fall, which will discourage producers from producing that product.

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