One assumption of the basic model of supply and demand is that
A) buyers and sellers have enough information to make informed choices.
B) buyers and sellers will benefit equally from a voluntary transaction.
C) sellers will always have more information than buyers.
D) buyers will always have more information than sellers.

Question

Quizplus · Accepted Answer

The assumption of the basic model of supply and demand is that buyers and sellers have enough information to make informed choices. It is necessary that both parties have access to relevant information in order for the market to operate efficiently.

One Assumption of the Basic Model of Supply and Demand