An assumption of a competitive market is that both buyers and sellers are price takers. When we go to the mall to shop for clothing or to the grocery to buy food, what do we usually observe?
A) Both buyers and sellers are usually price takers.
B) Buyers are often price takers, but sellers are usually price makers.
C) Buyers are often price makers, but sellers are usually price takers.
D) Both buyers and sellers are usually price makers.

Question

Quizplus · Accepted Answer

In most retail settings like malls or grocery stores, sellers set the prices for goods, making them price makers, while buyers accept these prices, making them price takers.

An Assumption of a Competitive Market Is That Both Buyers