In a perfect market price and quantity to be bought are determined by the
Answer Details
In a perfect market, the price and quantity of a good or service are determined by the forces of demand and supply. This means that the price of the good or service will adjust until the quantity supplied by producers is equal to the quantity demanded by consumers. The higher the price, the less quantity demanded by consumers, and the more quantity supplied by producers. Conversely, the lower the price, the more quantity demanded by consumers, and the less quantity supplied by producers. The equilibrium price and quantity occur where the quantity demanded equals the quantity supplied. This system is often referred to as the "invisible hand" of the market, where prices and quantities are determined by the interactions of buyers and sellers without any external intervention.