The net supply of a good for an individual being part of an exchange economy is:
A)equal to the net demand.
B)equal to the aggregate supply.
C)the difference between what he or she supplies and what it owns as endowment.
D)the difference between what he or she supplies and what the other market participants supply.

Question

Quizplus · Accepted Answer

The net supply of a good for an individual in an exchange economy is the difference between what he or she supplies and what it owns as an endowment. This is because an individual's endowment represents their initial ownership of goods, and any additional goods they supply would increase their net supply. Therefore, the correct choice is C.

The Net Supply of a Good for an Individual Being