Question

Use the following two statements to answer this question:

I. A market is a collection of buyers and sellers that, through actual or potential interactions, determine the price for a product or set of products.
II. An industry is a collection of markets for similar or closely related products.

a) I is false, and II is true.
b) Both I and II are false.
c) Both I and II are true.
d) I is true, and II is false.

Answer 1

c). Both I and II are true

Step-by-step explanation:

I. A market is indeed a collection of buyers and sellers, that determine the price and quantity of trading through their interaction, this include failed and successful transactions, this process is ilustrated through the supply and demand curve.

II. And industry is the sum of the different markets that exist for products that are closely related and that substitute each other.

For example: Potato industry which includes the markets for the different denominations of potato and at the time this industry belongs to the tuber industry which belongs to the agro industry.