In a Competitive Market, How Are Prices Determined

question 34

Multiple Choice

In a competitive market, how are prices determined?

• A) by the interaction of many buyers and many sellers
• B) by the interaction of many buyers with the largest seller
• C) by the government, who sets the prices that sellers can charge
• D) by the largest buyer, who sets the price that all firms sell at

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Definitions:

Economic Factors

Elements that influence the performance of economies, including inflation, employment levels, GDP growth, and interest rates.

Social Bias

Prejudice or unfounded judgment toward individuals or groups based on societal stereotypes.

Theory Of Mind

One’s awareness that other people base their behaviors on their own beliefs, intentions, and mental states, not on information they have no way of knowing.

Egocentrism

A cognitive trait involving the inability to distinguish between one's own perspective and someone else's perspective.