Imperfect markets: do not exist in democracies. always result in supply exceeding demand. always result in demand exceeding supply. occur when the buyer or seller has an influence on the price. can't occur if there are many buyers and many sellers.

Question

Kameron Lewis

Business

26 July, 17:19

Imperfect markets: do not exist in democracies. always result in supply exceeding demand. always result in demand exceeding supply. occur when the buyer or seller has an influence on the price. can't occur if there are many buyers and many sellers.

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Answers (1)

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Rory Stark · Answer 1

The correct answer is: when buyers and sellers have influence on price.

Explanation:

The imperfect market situations exist when there are few buyers or sellers such that they are able to influence the market. For instance, in a perfectly competitive market, there is a large number of buyers and sellers. So, any single buyer or seller is not able to influence the market. The price and output are determined by the market forces.

In an imperfect market such as monopoly or oligopoly, few firms exist so they are able to fix output and price on their own.