Question

Quiz: Chapter 5 Quiz This Question: 1 pt 17 of 20 This Quiz Which of the following best describes why consumers are price takers? O A. Individual transactions are too small to have much impact on the market price. O B. Many individuals lack the skills to negotiate prices. ° C. If consumers don't pay the price asked, the store will just sell the product to someone e D. Consumers don't know what it costs to make most products. Click to select your answer Save for Later 10 郦

Answer 1

Consumers are called price takers because

a) Indivitual transactions are too small to have much impact on the market price.

Each consumer in a competitive market buys a little amount of the total produced goods which is far away to impact on the prices set by the producer in the market. Hence consumers have no say over the product prices as they are bound to purchase whatever they need in tiny fractions of the product. So they are called price takers.