If Buyers and Sellers in a Certain Market Are Price

question 41

Multiple Choice

If buyers and sellers in a certain market are price takers,then individually

• A)they have no influence on market price.
• B)they have some influence on market price but that influence is limited.
• C)buyers will be able to find prices lower than those determined in the market.
• D)sellers will find it difficult to sell all they want to sell at the market price.

---

Definitions:

Disposable Income

Funds at households' discretion for savings and spending pursuits after the deduction of income taxes.

Autonomous Consumption

The minimum level of consumption that would still occur even if a consumer had no income, based on basic needs and obligations.

MPS

Marginal Propensity to Save, which is the fraction of an increase in income that is not spent on an increase in consumption.

Disposable Income

Funds that households can direct towards their saving and spending ambitions after income taxes are accounted for.