The supply and demand model is not appropriate when analyzing markets where
A) there are many buyers.
B) there are few sellers.
C) suppliers provide identical products.
D) transactions occur easily.
E) both buyers and sellers know all the information about the product.

Question

Quizplus · Accepted Answer

The supply and demand model assumes perfect competition, which requires many sellers. When there are few sellers, the market may be more accurately described by models of imperfect competition, such as monopoly or oligopoly.

The Supply and Demand Model Is Not Appropriate When Analyzing