acts as the main market signal - to which utility maximising buyers and profit maximising sellers respond.

Demand

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Supply

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Quantity

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Price

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Solution

The correct option is D Price
Buyers would buy when marginal utility is greater than price and sellers would sell when marginal cost is less than price. Hence, price acts as the market signal to which both buyers and sellers respond.

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acts as the main market signal - to which utility maximising buyers and profit maximising sellers respond.

The correct option is D PriceBuyers would buy when marginal utility is greater than price and sellers would sell when marginal cost is less than price. Hence, price acts as the market signal to which both buyers and sellers respond.

The correct option is D Price
Buyers would buy when marginal utility is greater than price and sellers would sell when marginal cost is less than price. Hence, price acts as the market signal to which both buyers and sellers respond.