Economics A Level (DONEEEEEEE): What Assumptions does the Demand and Supply model Make? What does this lead to?

Question

What Assumptions does the Demand and Supply model Make? What does this lead to?

eric_galvao · Accepted Answer

-Supply and Demand are Independent of Each other
-All Markets are Perfectly Competitive 
-Ceteris Paribus. 
- This leads to the Model having little Real World Usage but helps understand how Supply and Demand Behave in a way that’s Easy, Simple and Understandable

Economics A Level (DONEEEEEEE)

What Assumptions does the Demand and Supply model Make? What does this lead to?

-Supply and Demand are Independent of Each other -All Markets are Perfectly Competitive -Ceteris Paribus. - This leads to the Model having little Real World Usage but helps understand how Supply and Demand Behave in a way that’s Easy, Simple and Understandable

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