One of the assumptions of the supply and demand model is that
A) there are many sellers and few buyers.
B) there are few sellers and many buyers.
C) there are few sellers and few buyers.
D) suppliers provide identical products.
E) sellers have more information than buyers about the product.

Question

Quizplus · Accepted Answer

The supply and demand model assumes that suppliers provide identical products, which is a characteristic of a perfectly competitive market.

One of the Assumptions of the Supply and Demand Model