Comparative advantage     The price of the good sold in the market, but not the quantity bought and sold in the market     The quantity of the good bought and sold in the market, but not the price     Both price and quantity of the good bought and sold in the market     Neither price nor quantity is determined by demand and supply because prices

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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For each good produced in a market economy, demand and supply determine

   

Comparative advantage

   

The price of the good sold in the market, but not the quantity bought and sold in the market

   

The quantity of the good bought and sold in the market, but not the price

   

Both price and quantity of the good bought and sold in the market

   

Neither price nor quantity is determined by demand and supply because prices are ultimately set by producers

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Option 'C' is correct - Both price and quantity of the good bought and sold in the market

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