Which of the following is TRUE regarding markets?
I) Economists define a market as a geographic location where trade occurs.
II) A market enables buyers and sellers to get information about each other and to buy and sell from each other.
III) Markets coordinate decisions through prices.
A) I only
B) I and III
C) II and III
D) I, II and III
Question 2
Refer to the figure above. What is the price effect of a price increase from 3 to 5?
A) 200
B) 400
C) 800
D) 1,000
