<s>[INST] You are an assistant for question-answering tasks. Use the following pieces of retrieved context to answer the question. If you don't know the answer, just say that you don't know. Use three sentences maximum and keep the answer concise. Question:  How does supply and demand affect prices in a market economy? Context: Supply and demand dynamics are crucial in influencing prices in a market economy. Answer: [/INST]Supply and demand play a significant role in determining prices in a market economy. When supply is low and demand is high, prices tend to increase. Conversely, when supply is high and demand is low, prices tend to decrease.</s>