Sometimes, in supply and demand models, its not clear who supplies and who demands. For instance, in

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Sometimes, in supply and demand models, it’s not clear who “supplies” and who “demands.” For instance, in the labor market, it is individual workers (not firms) who supply labor. In the loanable funds market, who is usually the supplier and who is usually the demander? Choose the correct answer.

a. Entrepreneurs supply loanable funds and savers demand loanable funds.

b. Entrepreneurs supply loanable funds and savers also supply loanable funds.

c. Entrepreneurs demand loanable funds and savers demand loanable funds.

d. Entrepreneurs demand loanable funds and savers supply loanable funds.

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Modern Principles Of Economics

ISBN: 9781319245399

5th Edition

Authors: Tyler Cowen, Alex Tabarrok

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