Concept:The price mechanism is the system by which prices are determined by the interaction of buyers and sellers in a free market.
Explanation:Price mechanism operates without government interference or central planning.
In a free market, buyers express their willingness to pay through demand, while sellers express their willingness to supply through supply.
When demand and supply interact, they establish an equilibrium price for every commodity.
This interaction is driven by market forces, which are the combined actions of consumers and producers.
Auctioning, treasury bills, and government legislation are not the natural determinants of prices in a market economy.
They represent artificial or administrative influences, not the core mechanism of price determination.
Therefore, the price mechanism relies on the free forces of demand and supply to set prices automatically.
Answer:B. market forces