A market in which investors trade with dealers at the prices quoted by dealers is called a(n):

In a market where investors transact with dealers at prices quoted by those dealers, the correct classification is a price-driven market. This type of market relies on dealers to provide liquidity by quoting prices for buying and selling securities. Dealers act as market makers, ensuring that there is a continuous market for securities by standing ready to buy or sell at both bid and ask prices.

In contrast, a brokered market relies on brokers to facilitate trades between buyers and sellers, without holding inventories of securities. An order-driven market, on the other hand, matches buy and sell orders based on market price, often using an auction system, where prices are largely determined by supply and demand dynamics among the participants rather than by predefined quotes from dealers.

A dealer market specifically emphasizes the role of dealers in providing quotes, meaning that it is quite similar to a price-driven market. However, the broader term "price-driven market" encapsulates the dynamics of the quoted price mechanism, which is essential to understanding how trades occur in that environment. Thus, identifying the market type as price-driven highlights the transactional nature and the importance of dealer quotes in setting market prices.