A seller at a farmer's market wants $10 for a bag of 10 apples. You think his price is too high, so you counter with an offer of $6 for the bag. The seller then offers you a much smaller bag of five apples for $6. You bargain again, and the seller lets you buy the 10 apples for $8. This scenario is an example of:

Question

Quizplus · Accepted Answer

This scenario is an example of a market in action, where the buyer and seller negotiate to reach a mutually beneficial price. Both parties have bargaining power and are able to make offers and counteroffers until they reach an agreement. This is not a centrally planned market because there is no outside authority setting prices or controlling the transaction. There is also no shortage or perfect competition evident in this scenario.

A Seller at a Farmer's Market Wants $10 for a Bag