Question

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

Answer 1

A. The​ supply-and-demand model is appropriate for analysis under certain conditions.

Step-by-step explanation:

The​ supply-and-demand model does not always apply in goods​ markets but also applies in service markets. Therefore, option B is false.

Since the analysis is a vast thing and no mention of what type of analysis can a supply-and-demand model usually provides, this option is incorrect.

It is the opposite of option B. Therefore, option D is wrong.

Option A is correct because the supply-and-demand model is used for analysis, but there should be some conditions such as ceteris paribus.