The term price taker is used to describe a situation in which consumers have no influence over the market price for a good or service and must take whatever price is set by the economically powerful firms.

Question

Quizplus · Accepted Answer

The term price taker is actually used to describe firms or producers that have no influence over the market price and must accept the prevailing price set by supply and demand. Consumers, on the other hand, do have some influence over the market price through their willingness to pay and buying decisions.

The Term Price Taker Is Used to Describe a Situation