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?
(2 points)
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.
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.