The Power of the Supply and Demand Model Lies in Its

Multiple Choice

The power of the supply and demand model lies in its ability

A) to generally predict how price and quantity will change with supply and demand shocks.
B) to precisely predict the impact of government regulations on quantity and price.
C) to precisely determine the difference between price ceilings and price floors.
D) to generally predict how profit motive impacts the distribution of goods and services.