Question

Which of the following is​ true? A. The​ supply-and-demand model always applies in service​ markets, but only sometimes applies in goods markets. B. The​ supply-and-demand model is appropriate for analysis under certain conditions. C. The​ supply-and-demand model is always appropriate for analysis. D. The​ supply-and-demand model always applies in goods​ markets, but only sometimes applies in service market

Answer 1

Answer: (B.) The​ supply-and-demand model is appropriate for analysis under certain conditions.

Step-by-step explanation:

Supply and Demand is an economic model that determines the price in market. It posit that, holding everything else constant, in competitive market, the price for a particular commodity, or other traded commodity such as labor, will change until it settles at a point where the quantity demanded will be to equal the quantity supplied, resulting in an economic equilibrium.