In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of:

In a market-oriented economy, the amount of a good that is produced is primarily decided by the interaction of supply and demand.

Here's a step-by-step explanation:

1. Demand: This refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price. The relationship between price and quantity demanded is known as the demand relationship.

2. Supply: This represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price. The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship.

3. Price Determination: The price of the good is determined by both the supply and demand in the market. If the demand is high and the supply is low, the price will be high. Conversely, if the supply is high and the demand is low, the price will be low.

4. Quantity of Goods Produced: The intersection of the supply and demand curves determines the market price and quantity of goods produced. This is known as equilibrium. At this point, the allocation of goods is at its most efficient because the amount of goods being supplied is exactly the same as the amount of goods being demanded.

So, in a market-oriented economy, the interaction of supply and demand primarily decides the amount of a good that is produced.