In product markets,_____
A)households are the demanders and firms are the suppliers.
B)households are the suppliers and firms are the demanders.
C)price and quantity demanded are positively related.
D)price and quantity supplied are inversely related.
E)price and quantity demanded are not related.

Question

Quizplus · Accepted Answer

In product markets, households are the ones who demand goods and services, while firms are the ones who supply them. This relationship is known as the buyer-seller relationship, where prices and quantity demanded are positively related. Therefore, choice A is correct. B is incorrect as it goes against the traditional buyer-seller relationship. C and D are incorrect, as they describe the relationship between price and either quantity demanded or supplied, but not the overall market structure. E is incorrect, as there is always a relationship between price and quantity demanded in a product market.

In Product Markets,_____