Only one of the following will have a significant impact on the degree to which market prices converge to the predicted equilibrium. Which one is it?
A) The magnitude of consumer is much larger than the magnitude of the producer surplus.
B) The shape of the demand and supply curves; whether they are relatively flat or relatively steep.
C) Whether buyers and sellers can each buy and sell only one unit respectively or whether they can transact multiple units each.
D) Whether the price formation process follows centralized trading as in a call-market or de-centralized trading as in Smith's continuous double auction.

Question

Quizplus · Accepted Answer

The Answer of Only one of the following will have a significant impact on the degree to which market prices converge to the predicted equilibrium. Which one is it?
A) The magnitude of consumer is much larger than the magnitude of the producer surplus.
B) The shape of the demand and supply curves; whether they are relatively flat or relatively steep.
C) Whether buyers and sellers can each buy and sell only one unit respectively or whether they can transact multiple units each.
D) Whether the price formation process follows centralized trading as in a call-market or de-centralized trading as in Smith's continuous double auction.

Only One of the Following Will Have a Significant Impact