Question

In: Economics

In a market economy who determines price? a. The buyer. b. The seller. c. The government....

In a market economy who determines price?

a. The buyer.

b. The seller.

c. The government.

d. The buyer and the seller together.

Solutions

Expert Solution

Option d

d. The buyer and the seller together.

A market economy is an economy works with the bargain of market stakeholders that is buyer and sellers so the price is fixed by the demand and supply of the buyer and seller in the economy.

A buyer fix price in the monopsony market

A seller fix the price in a monopoly market

A government fix price in control economy

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

Consider a buyer and seller who enter into a contract where the seller produces a good...
Consider a buyer and seller who enter into a contract where the seller produces a good and delivers it to the buyer for payment. At the time of making the contract, the seller is uncertain as to the actual cost of the project, and the situation is described by the following: Cost = 30 with probability 60% Cost = 70 with probability 20% Cost = 150 with probability 20% Before production occurs, the seller does learn the cost. The value...
A ________ is a sales transaction arranged by the seller to benefit a buyer who pays...
A ________ is a sales transaction arranged by the seller to benefit a buyer who pays an unreasonably low price for the item sold. QUESTION 1 A ________ is a sales transaction arranged by the seller to benefit a buyer who pays an unreasonably low price for the item sold. Fraud in the inducement. Blue Sky transfer. Sale under duress. Sham sale. QUESTION 2 ________ of a security interest provides protection to secured parties from third parties who may later...
when the merchandise is sold on credit and the seller notifies the buyer of a price...
when the merchandise is sold on credit and the seller notifies the buyer of a price reduction, does the seller send a credit memo or a debit memo?
a) Buyer A has entered into a contract for the sale of goods with Seller B....
a) Buyer A has entered into a contract for the sale of goods with Seller B. Seller B has delivered nonconforming goods but has promised to cure the defects. After three months of waiting, Seller B has not cured the defect. What remedy does Buyer A have?   b) Buyer A has entered into a contract for the sale of goods with Seller B. Buyer A has breached the contract while the goods are in transit. What remedy does Seller B...
a)   Buyer A has entered into a contract for the sale of goods with Seller B....
a)   Buyer A has entered into a contract for the sale of goods with Seller B. The contract provides that Seller B will deliver the goods on May 1, 2010. On May 1, 2010, Seller B informs A that it will not be able to perform the contract. Assume Buyer A was going to pay $3,000 for the goods under the contract with Seller B. Seller C will sell Buyer A the goods for $4,000 plus a transportation cost of...
Buyer A has entered into a contract for the sale of goods with Seller B.
Buyer A has entered into a contract for the sale of goods with Seller B. The contract provides that Seller B will deliver the goods on May 1, 2010. On February 1, 2010, Seller B informs A that it will not be able to perform the contract. What has occurred and what remedies are available to A in this case?
Posted Price by a Buyer: In this problem, everything is as in problem 3, except that the buyer is the one making an offer to the seller.
Posted Price by a Buyer: In this problem, everything is as in problem 3, except that the buyer is the one making an offer to the seller. To be clear, the Bayesian game now proceeds as follows: first, the buyer announces a price at which he will purchase the object from the seller and, second, the seller either accepts or rejects this offer. If the seller accepts the buyer's offer, the buyer pays the announced price to the seller and the...
Market Efficiency and Market Failure An exchange between a buyer and seller occurs usually when the...
Market Efficiency and Market Failure An exchange between a buyer and seller occurs usually when the exchange creates both a consumer surplus and a supplier surplus. Market efficiency occurs when consumer and supplier surplus are maximized. However, in exchanges between buyers and sellers, should society be only concerned with market efficiency? a) Describe a personal experience of when you purchased a product or service whereby you feel you maximized surplus as a consumer but the supplier surplus was not maximized....
A monopolist seller faces two buyer A and B. Each buyer has his own incremental reservation...
A monopolist seller faces two buyer A and B. Each buyer has his own incremental reservation price for 1, 2, 3, or 4 units of Widgets as shown on the table below. Quantity First Unit Second Unit Third Unit Fourth unit A's Reservation price 7 5 3 1 B's reservation price 14 10 6 2 So for example, the A buyer has a total reservation price of 15 for 3 units of Widgets. 1) Suppose the seller cannot separate the...
The Seller in State A contracted to deliver 2,000 barrels of oil to the Buyer in State B for $120,000, with the price payable upon delivery.
The Seller in State A contracted to deliver 2,000 barrels of oil to the Buyer in State B for $120,000, with the price payable upon delivery. When the oil arrived, 1,970 barrels complied fully with the contract description, however, 30 barrels were contaminated and unacceptable. The Seller admits that he is responsible for this breach. At the time of delivery,oil was available in the local market for a price of $75 a barrel.Assuming both States A and B are signatories...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT