Question

All of the following affect how quickly the forces of supply and demand work EXCEPT:

A) Degree of standardization of the product's price
B) Mobility of the parties to the transaction
C) Degree of standardization of the product
D) Mobility of the product

Answer 1

All options except the mobility of the product can affect the speed of supply and demand forces.

Step-by-step explanation:

All of the provided options except D) Mobility of the product can affect how quickly the forces of supply and demand work.

1. A) Degree of standardization of the product's price: If a product's price is standardized, it means that there is little variation in its price among sellers. In this case, supply and demand forces can work quickly because both buyers and sellers have clear information about the market price, making it easier to reach an equilibrium.
2. B) Mobility of the parties to the transaction: If buyers and sellers have high mobility, meaning they can easily enter or exit the market, the forces of supply and demand can work quickly. High mobility allows for more competition and flexibility, leading to a faster adjustment of prices.
3. C) Degree of standardization of the product: Similar to the first option, the standardization of the product itself can affect how quickly the forces of supply and demand work. A standardized product means that there is no significant variation in quality or features, making it easier for buyers and sellers to make decisions and reach an equilibrium.