3
Question
A simple market model is an example of
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Solution
The correct option is C Static mathematical model
In simple−market−model generally there is a balance between supply and demand. Both factors depend on price. Demand for the commodity will be low when the price is high and it will increase as the price drops. If we take the simplistic linear case the relationship between demand (𝑄) and price (𝑃) might be represented by the straight line.
Therefore, simple−market−model is a static−mathematical−model as it doesn't vary with time.
In simple−market−model generally there is a balance between supply and demand. Both factors depend on price. Demand for the commodity will be low when the price is high and it will increase as the price drops. If we take the simplistic linear case the relationship between demand (𝑄) and price (𝑃) might be represented by the straight line.
Therefore, simple−market−model is a static−mathematical−model as it doesn't vary with time.
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