Asked by mackenzie newland on Jun 24, 2024
Verified
In a competitive market, every consumer willing to pay the market price can buy a product and every producer willing to sell the product at that price can sell it.
Market Price
The current price at which an asset or service can be bought or sold in the open market.
- Realize the significance of prices in the marketplace as signals facilitating the coordination between buyer and seller decisions.
- Analyze the formation of market equilibrium price and quantity and the effect of varying supply and demand on these measures.
Verified Answer
DH
Dylan HodgesJun 27, 2024
Final Answer :
True
Explanation :
In a competitive market, the market price is determined by the intersection of the supply and demand curves. At this price, every willing consumer can buy the product and every willing producer can sell it. This is one of the defining characteristics of a competitive market.
Learning Objectives
- Realize the significance of prices in the marketplace as signals facilitating the coordination between buyer and seller decisions.
- Analyze the formation of market equilibrium price and quantity and the effect of varying supply and demand on these measures.