The Power of the Supply and Demand Model Lies in Its

question 121

Multiple Choice

The power of the supply and demand model lies in its ability

• A) to generally predict how price and quantity will change with supply and demand shocks.
• B) to precisely predict the impact of government regulations on quantity and price.
• C) to precisely determine the difference between price ceilings and price floors.
• D) to generally predict how profit motive impacts the distribution of goods and services.