Table of contents

1. Introduction to Macroeconomics1h 57m
2. Introductory Economic Models59m
3. Supply and Demand3h 43m
4. Elasticity2h 26m
5. Consumer and Producer Surplus; Price Ceilings and Price Floors3h 40m
6. Introduction to Taxes1h 25m
7. Externalities1h 3m
8. The Types of Goods1h 13m
9. International Trade1h 16m
10. Introducing Economic Concepts49m
11. Gross Domestic Product (GDP) and Consumer Price Index (CPI)1h 37m
12. Unemployment and Inflation1h 15m
13. Productivity and Economic Growth1h 17m
14. The Financial System1h 37m
15. Income and Consumption52m
16. Deriving the Aggregate Expenditures Model1h 22m
17. Aggregate Demand and Aggregate Supply Analysis1h 18m
18. The Monetary System1h 1m
19. Monetary Policy1h 32m
20. Fiscal Policy1h 0m
21. Revisiting Inflation, Unemployment, and Policy46m
22. Balance of Payments30m
23. Exchange Rates1h 16m
24. Macroeconomic Schools of Thought40m
25. Dynamic AD/AS Model35m
26. Special Topics11m

3. Supply and Demand

Introduction to Supply and Demand

Macroeconomics

3. Supply and Demand

Introduction to Supply and Demand

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Multiple Choice

Products sold in a perfectly competitive market are

Homogenous

Heterogeneous

Efficient

Inefficient

Both (a) and (c)

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Verified step by step guidance

Understand the characteristics of a perfectly competitive market. In such a market, there are many buyers and sellers, and no single buyer or seller can influence the market price.

Recognize that one of the key features of a perfectly competitive market is that the products offered by different sellers are identical or homogenous. This means that consumers perceive no difference between the products of different sellers.

Consider the implications of product homogeneity: since products are identical, the only basis for competition is price, leading to efficient allocation of resources.

Evaluate the options given: 'Homogenous' aligns with the characteristic of products in a perfectly competitive market, while 'Heterogeneous' does not, as it implies product differentiation.

Conclude that the correct answer is 'Homogenous' because it accurately describes the nature of products in a perfectly competitive market, which are identical across different sellers.