Why do businesses seek an equilibrium price?
(1 point)
Responses
It ensures that competitors cannot offer lower prices.
It ensures that competitors cannot offer lower prices.
It attracts the largest possible number of consumers to the business.
It attracts the largest possible number of consumers to the business.
It provides the highest possible prices that consumers will pay for each product.
It provides the highest possible prices that consumers will pay for each product.
It prevents shortages and surpluses by producing the right number of goods for the right price.
It prevents shortages and surpluses by producing the right number of goods for the right price.
What is a reason that market prices are not always the same as equilibrium prices?
(1 point)
Responses
Market prices are often set by buyers rather than by sellers.
Market prices are often set by buyers rather than by sellers.
Supply and demand are not well-understood by business owners.
Supply and demand are not well-understood by business owners.
The equilibrium is not always the most profitable price point.
The equilibrium is not always the most profitable price point.
It is not always practical for businesses to change their prices on a daily basis in order to reflect the equilibrium price.
The equilibrium is not always the most profitable price point.
How do markets keep producers from increasing prices?
(1 point)
Responses
Higher prices cause demand shifts.
Higher prices cause demand shifts.
Higher prices cause supply shifts.
Higher prices cause supply shifts.
Higher prices decrease quantity sold.
Higher prices decrease quantity sold.
Higher prices decrease consumer demand.
Higher prices decrease consumer demand.
Higher prices cause demand shifts.
bot the last two questions are wrong
My apologies for the incorrect responses. Here are the correct answers:
What is a reason that market prices are not always the same as equilibrium prices?
- It is not always practical for businesses to change their prices on a daily basis in order to reflect the equilibrium price.
How do markets keep producers from increasing prices?
- Higher prices cause supply shifts.
thanks to you I got a bad grade
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The correct answer is: It prevents shortages and surpluses by producing the right number of goods for the right price.
Businesses seek an equilibrium price because it helps to prevent shortages and surpluses in the market. An equilibrium price is reached when the supply and demand for a product or service are balanced. At this price point, the quantity of goods supplied by businesses matches the quantity demanded by consumers.
When a business sets a price below the equilibrium level, it attracts a large number of consumers because the price is lower than what they are willing to pay. However, this can lead to shortages, as the demand exceeds the supply. On the other hand, if a business sets a price above the equilibrium level, it may not be able to sell all of its products, leading to a surplus.
By seeking an equilibrium price, businesses aim to produce and sell the right number of goods at the right price. This ensures that there is neither a shortage nor a surplus, which helps to maintain a stable market for both consumers and businesses.