One of the assumptions of the supply and demand model is that
A) there are few buyers.
B) there are few sellers.
C) there are few buyers and few sellers.
D) transactions are costly.
E) both buyers and sellers know all the information about the product.

Question

Quizplus · Accepted Answer

One of the assumptions of the supply and demand model is that both buyers and sellers have perfect information about the product. This means that they know everything about the product, including quality, price, and availability, which allows them to make informed decisions about buying and selling. The other choices do not align with the assumption of perfect information and are therefore incorrect.

One of the Assumptions of the Supply and Demand Model