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1. The American economic system is, organized around a basically private-enterprise, market- oriented economy in which consumers largely determine what shall be produced by spending their money in the marketplace for those goods and services that they want most.
2. Thus, in the American economic system it is the demand of individual consumers, coupled with the desire of businessmen to maximize profits and the desire of individuals to maximize their incomes, that together determine what shall be produced and how resources are used to produce it.
3. If, on the other hand, producing more of a commodity results in reducing its cost, this will tend to increase the supply offered by seller-producers, which in turn will lower the price and permit more consumers to buy the product.
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