In a capitalist society, the distribution of goods and services is based on which of the following factor?

purchasing power

In a capitalist society, the distribution of goods and services is based on purchasing power rather than on the basis of people's needs. This means that individuals must have the financial means to buy goods and services. For example, low-cost housing for the poor is a pressing need, but it would not be considered a market demand because the poor lack the purchasing power to support that demand. Consequently, such a commodity would not be produced and supplied according to market forces.