Question

Choose the correct option.

Statement 1: For a market to function, the presence of potential sellers is as important as the presence of potential buyers.

Statement 2: There must exist a business relationship between the potential sellers and buyers, else the market may collapse.

• A. Statement 1 is true and statement 2 is falase.
• B. Statement 1 is false and statement 2 is true.
• C. Both the statements are true.
• D. Both the statements are false.

Answer 1

The correct option is C Both the statements are true.

There must be a group of buyers and sellers of the commodity to constitute a market. And the relations between these sellers and buyers must be business relations.