Question

Why do businesses seek an equilibrium price?

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.

Answer 1

[AI-generated answer — Bot GPT 3.5]

It helps businesses maximize profits by ensuring that they are selling their products at a price that balances supply and demand, leading to optimal sales and revenue. Additionally, having an equilibrium price can also create stability within the market, reducing the risk of price fluctuations and uncertainties for businesses. Overall, seeking an equilibrium price allows businesses to operate efficiently and effectively in the market.