Questions and Answers
What is the economic model of price determination in a market called?
Supply and demand
What does the supply and demand model postulate will happen in a competitive market when the quantity demanded is greater than the quantity supplied?
The price will increase
In which type of market does the supply and demand model assume that price and quantity transacted reach an economic equilibrium?
Perfect competition
Which branch of economics uses the supply and demand model as its theoretical basis?
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What does a supply schedule depict graphically?
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