In a Perfectly Competitive Market, Which of the Following Determines

question 389

Multiple Choice

In a perfectly competitive market, which of the following determines the market price?

• A) market demand and a firm's supply
• B) market supply and a firm's demand
• C) a firm's demand and its supply
• D) market demand and market supply

---

Definitions:

Currency Restrictions

Regulations or limits placed on the exchange or trade of a country's currency with others to control the currency's value and balance of payments.

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net income transfers, indicating the flow of goods, services, and payments in and out of the country.

Net Exports

Net exports are the difference between a country's total exports of goods and services and its total imports of them, representing the external demand for a country’s goods.

Statistical Discrepancy

The difference between two figures that are supposed to match but do not, often found in economic data due to estimation errors or timing differences.