In capitalist economies, prices are

In capitalist economies, prices are determined by the market, through the law of supply and demand.

Explanation:

Demand and supply is an economic model that describes the process of pricing in the market. This model introduces the concept of supply and demand as universal characteristics of the market and proves that under certain conditions these characteristics are balanced and lead to a certain price for this product. In this case, the demand - the need for goods on the market, and supply - the amount of goods that are on the market or can be delivered to it. The conclusion of the equilibrium model is well suited to the behavior of a large number of markets and is considered an important economic law in capitalism.

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