Question 5
Price DeterminationIn Economics, market is defined as
- A.a place where buyers and sellers come together to exchange goods
- B.any agreement made for consumers to buy all they need
- C.any arrangement made for producers to sell all their goods
- D.any arrangement whereby the buyers and sellers are in close touch with one another
- E.a place where only consumer goods are sold.
Show the answer and explanation
Answer: D (any arrangement whereby the buyers and sellers are in close touch with one another)
Explanation
In economics a market need not be a place; it is any arrangement that brings buyers and sellers into contact (phone, internet, agents).