In a competitive market:Select one:a. buyers compete with other buyers, and sellers compete with other sellers. b. buyers compete with sellers, and sellers compete with buyers. c. sellers alone determine the equilibrium price. d. buyers alone determine the equilibrium price.

Question

Business

Drew Wright

20 October, 01:09

In a competitive market:Select one:a. buyers compete with other buyers, and sellers compete with other sellers. b. buyers compete with sellers, and sellers compete with buyers. c. sellers alone determine the equilibrium price. d. buyers alone determine the equilibrium price.

+5

Answers (1)

Know the Answer?

Hassan Poole · Answer 1

The answer is A. buyers compete with other buyers, and sellers compete with other sellers

Explanation:

In a competitive market, buyers compete with buyers and sellers compete with sellers.

There is always a large number of buyers and sellers that no buyer or seller can influence the price in the market.

Also, no seller or buyer can determine the market price because the products offered by the sellers are almost identical.

Barrier to entry and exit is low, so potential producer can come to the market any time.

The competition is very healthy in this market.

The demand curve is download sloping, meaning the higher the price the lower the quantity demanded.