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4

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.}

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