Which of the following is one of the four main elements that define a market?

• A. Buyers and sellers
• B. Government regulation
• C. Production technology
• D. Externalities

Answer: (A)

Verified step by step guidance

1. Understand that a market in microeconomics is defined by key elements that facilitate the exchange of goods and services.
2. Recall the four main elements that define a market: buyers, sellers, the product or service being exchanged, and the price mechanism.
3. Identify that 'buyers and sellers' are essential participants in any market because they engage in the exchange process.
4. Recognize that government regulation, production technology, and externalities are important economic concepts but are not considered fundamental elements that define a market itself.
5. Conclude that among the options given, 'buyers and sellers' correctly represent one of the four main elements that define a market.