Which market is the model of supply and demand most appropriate for?
A) markets in which there is one large seller and many buyers
B) markets in which there is one large buyer and many sellers
C) markets in which there are few sellers and few buyers
D) markets in which there are many sellers and many buyers

Question

Quizplus · Accepted Answer

The model of supply and demand is most appropriate for markets in which there are many sellers and many buyers because in such markets, the forces of supply and demand interact to determine the equilibrium price and quantity. The many buyers and sellers ensure that no one individual or group can exert too much influence on the market, allowing for the principles of supply and demand to operate freely.

Which Market Is the Model of Supply and Demand Most