Which of the Following Most Resembles a Perfectly Competitive Market

question 209

Multiple Choice

Which of the following most resembles a perfectly competitive market?

• A)The stock market
• B)The publishing industry
• C)The steel industry
• D)The new car market

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Definitions:

Income Elasticity

A gauge of the extent to which the consumption of a good or service is affected by alterations in the income levels of consumers.

Inferior Good

A type of good for which demand decreases when consumer income rises, contrary to normal goods where demand increases with rising income.

Excise Tax

A specific tax levied on particular goods or services at the point of manufacture or sale, often included in the price of the product.

Supply Curve

A graphical representation of the relationship between the price of a good or service and the quantity of it that producers are willing to supply.