Vernon Smith Tested the Supply and Demand Model in the Laboratory

Multiple Choice

Vernon Smith tested the supply and demand model in the laboratory and found that:

A) the results were not consistent with competitive price theory, as he expected.
B) buyers and sellers quickly converged on the predicted equilibrium.
C) the model may work in real life, but it does not work in the laboratory.
D) the buyers with the lowest willingness to pay bought the goods.