Engineering Board Exam Reviewer · Basic Economic Concepts · easy

In a perfectly competitive market, how many buyers and sellers are typically present, and what is their influence on price?

1. Many buyers and sellers, none can influence price
2. One seller, many buyers
3. Few sellers, many buyers
4. One buyer, many sellers

Answer

A. Many buyers and sellers, none can influence price

Solution

A perfectly competitive market has many buyers and sellers, none of whom can individually influence the market price.

More Basic Economic Concepts questions

1. A market situation with only one seller and many buyers is called:
2. A market situation with only one buyer and many sellers is called:
3. A market situation with only a few sellers dominating the market is called:
4. Which of the following best describes "necessity" goods in economics?
5. Which of the following best describes "luxury" goods?
6. According to the law of demand, as the price of a good increases (all else equal), what happens to the quantity demanded?
7. According to the law of supply, as the price of a good increases (all else equal), what happens to the quantity supplied?

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