Which of the following is a key assumption of the supply and demand model?
A) the price and quantity sold are determined in a single market
B) the prices and quantities sold are simultaneously determined in all markets
C) the way the whole economy achieves equilibrium
D) international markets affect domestic markets, which in turn affect local markets

Question

Quizplus · Accepted Answer

The supply and demand model assumes that the price and quantity sold of a good or service are determined in a single market, focusing on the interactions between buyers and sellers in that specific market to establish equilibrium prices and quantities.

Which of the Following Is a Key Assumption of the Supply