Question 6 Not yet answered Points out of 1 P Flag question

Question 6 Not yet answered Points out of 1 P Flag question When a market is competitive: Select one: O a. everybody competes with everybody else. O b. buyers compete with sellers to try to get lower prices. O c. buyers compete with sellers and sellers compete with one another, but buyers do not compete with one another. O d. buyers compete with other buyers, raising prices; and sellers compete with sellers, lowering prices

Solution

1) Solution: buyers compete with other buyers, raising prices; and sellers compete with sellers, lowering prices

Explanation: Under competitive market there are numerous buyers, and sellers of a homogenous good

2) Solution: $14 and 40

Explanation: Equilibrium occurs wghen quantity demanded equals quantity supplied. At $14; quantity demanded = quantity supplied = 40