The ancient idea of a geographically fixed marketplace has been extended to cover a set of conditions, which permits buyers and sellers to work together., true, false, Markets vary in location, types, geographic range and size and tend to behave in different ways too., true, false, The model of equilibrium of supply and demand is used by economists to study real markets., true, false, Market transactions made by both buyers and sellers tend to destroy the market equilibrium. , true, false, Government may set up price ceilings to keep market prices low., true, false, Competition in a perfect market is conducted in a completely free way and numerous buyers and sellers enjoy easy communications. , true, false, There are no perfect markets in practice but economists need them to keep balance between supply and demand curves in real world markets. , true, false, The lowest price which buyers will offer is the only price in a perfect market. , true, false.

EX2

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