Concept:In a free market economy, buyers and sellers interact freely to decide what, how, and for whom to produce.
Explanation:Resource allocation depends on market forces of demand and supply.
Prices act as signals that guide producers and consumers.
When demand rises, prices increase, encouraging more production.
When demand falls, prices decrease, reducing production.
Thus, the price mechanism coordinates economic decisions without government intervention.
This system is the hallmark of a free market economy.
Answer:Resources are allocated through the price mechanisms.
So, the correct option is B.