Which of the following is true? A. The supply-and-demand model is appropriate for analysis under certain conditions. B. The supply-and-demand model always applies in goods markets, but only sometimes applies in service markets. C. The supply-and-demand model is always appropriate for analysis. D. The supply-and-demand model always applies in service markets, but only sometimes applies in goods markets.

Question

Business

Watts

11 July, 19:18

Which of the following is true? A. The supply-and-demand model is appropriate for analysis under certain conditions. B. The supply-and-demand model always applies in goods markets, but only sometimes applies in service markets. C. The supply-and-demand model is always appropriate for analysis. D. The supply-and-demand model always applies in service markets, but only sometimes applies in goods markets.

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Answers (1)

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Jovan Barron · Answer 1

A. The supply-and-demand model is appropriate for analysis under certain conditions.

Explanation:

The supply-and-demand model does not always apply in goods markets but also applies in service markets. Therefore, option B is false.

Since the analysis is a vast thing and no mention of what type of analysis can a supply-and-demand model usually provides, this option is incorrect.

It is the opposite of option B. Therefore, option D is wrong.

Option A is correct because the supply-and-demand model is used for analysis, but there should be some conditions such as ceteris paribus.