What is the correct answer?


The price under perfect competition is settled by:

A. Producers

B. Sellers

C. Buyers

D. Sellers and buyers

Correct Answer :

D. Sellers and buyers

As we know that the equilibrium price in perfect competition is settled by the forces of supply and demand. Supply of product is from the side of sellers and demand of product is from the side of buyers. So, price is settled by both buyers and sellers.}

Related Questions

If a straight line supply curve makes an intercept on the Y-axis, elasticity… The name of the system of direct exchange is: Who formulated the Post-Keynsian Theory of Distribution and Growth? Formulation of an economic theory involves: For the given production function, technical inefficiency is defined as: While buying two goods X and Y with unequal prices, to maximize total… The short run cost curve is U shaped because of: The income consumption curve (ICC) is the locus of points of consumer… Neutral Technological Progress can be defined as: In short run, a firm can change its: Indifference curve approach (ordinal approach) is superior to utility… The game theory takes into consideration: According to Cobb-Douglas, in production function the marginal product… Social costs equal private costs when: The goods sold by firms under monopolistic competition are technological… Extension (expansion) and contraction of demand are result of: Duopoly is a market where there are: In cournot model, firms sell: If the demand for good is more elastic and government levied a tax per… Increasing returns imply: The marshallian indirect utility function in the form of equation is: The kink demand curve faced by an oligopolist is based on the assumption… If Marginal Utility (MU) is zero, then total utility is: Who wrote Economics of Imperfect Competition? In perfect cartel, the: The production process is: The average cost curve is a geometrical illustration of: Total costs in the short-term (short-run) are classified into fixed costs… Time Preference Theory of Interest was presented by: Which of the following would be least likely to cause a consumer to eat…