It is appropriate to use the supply-and-demand model in which of the following markets?

A) beer market

B) car market

C) wheat market

D) market for breakfast cereal

The correct answers are letters "A", "B", "C", and "D": beer market; car market; wheat market; market for breakfast cereal.

Explanation:

The supply-and-demand analysis is one of the most basic principles in economics. In simple terms, it states that when an item is scarce, but many people want it, the price of that item will rise. The theory can be applied to markets of goods and services, labor, capital, and all the factors of production. It could be useful to study the fluctuations of a firm or the overall economy.