The presence of many buyers and sellers is an important characteristic of competitive markets because it allows
A) sellers in the market to have influence over the market price.
B) buyers in the market to have influence over the market price.
C) sellers in the market to have influence over the market quantity.
D) buyers in the market to have influence over the market quantity.
E) the price and quantity in the market to be determined by market forces.

Question

Quizplus · Accepted Answer

In a competitive market with many buyers and sellers, no single buyer or seller has enough influence to affect the market price or quantity. Instead, these factors are determined by market forces such as supply and demand. As a result, the market reaches an equilibrium price and quantity that maximizes efficiency and benefits buyers and sellers alike.

The Presence of Many Buyers and Sellers Is an Important