Identify the correct statement form the following.
A)Governance prevents buyers in the market from switching between sellers.
B)The cost of ending a relationship with a buyer in the market is always high for sellers.
C)Goods and the parties involved in market transactions are not interchangeable.
D)At market-clearing prices participants can rest assured that shortages or surpluses will not frustrate their expectations.

Question

Quizplus · Accepted Answer

At market-clearing prices, the demand and supply for goods are balanced, ensuring that shortages or surpluses do not affect the expectations of participants. Option A is incorrect because governance is not related to buyers' switching between sellers. Option B is incorrect because the cost of ending a relationship with a buyer is subjective and depends on various factors. Option C is incorrect because goods and parties involved in market transactions are often interchangeable.

Identify the Correct Statement Form the Following