If a group of firms in a particular category of goods all change their quantity sold by 1 percent and revenues change significantly, then the firms constitute a market.

Question

Quizplus · Accepted Answer

The statement describes a scenario related to price elasticity of demand, not the definition of a market. A market is constituted by buyers and sellers interacting to trade goods or services, regardless of how changes in quantity sold affect revenues.

If a Group of Firms in a Particular Category of Goods