Which of the following is not an assumption underlying the supply and demand model?
A) The focus is on supply and demand in a single market.
B) All goods sold in the market are identical.
C) Different firms sell their goods at different prices.
D) There are many producers and consumers in the market.

Question

Quizplus · Accepted Answer

The supply and demand model assumes that there is a single price in the market at which goods are sold, not different prices by different firms. This is part of the model's simplification to analyze how markets operate under the assumption of perfect competition.

Which of the Following Is Not an Assumption Underlying the Supply