Question

State whether the following statement is True or False:
Under perfect competition, price is determined by equilibrium of demand and supply.

• A. True
• B. False

Answer 1

The correct option is A True

Under perfect competition, price is determined by equilibrium of demand and supply. In perfect competition, the price of a product is determined at the point at which the demand and supply curve intersect each other. The price determined at this point is called the Equilibrium Price.