Question

Choose all correct statements.

A. Demand curve represents the willingness to accept of buyers.

B. Supply curve represents the willingness to accept of sellers.

C. In a market of identical products where there are many sellers and many buyers, competition eliminates bargaining power in both supply and demand sides.

D. In a market of identical products where there are many sellers and many buyers, sellers are price-setters whereas buyers are price-takers.

Select one:

a. B, C, D

b. A, B, C, D

c. B, D

d. A, B, C

e. B, C

Answer 1

Ans - e) B and C

Explanation:

Only statement B and C are correct. Option A and D are incorrect because

option a) Demand curve represents the willingness to pay of buyers not accept of buyers.

Option d) is also incorrect because option c) is correct.

So Correct statements are:

B) Supply curve represents the willingness to accept of sellers.

C) In a market of identical products where there are many sellers and many buyers, competition eliminates bargaining power in both supply and demand sides.