Question

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.

Answer 1

The most relevant reason from the options provided is:

It is not always practical for businesses to change their prices on a daily basis in order to reflect the equilibrium price.

This highlights that while equilibrium prices are theoretical outcomes based on supply and demand, businesses often set market prices based on various practical considerations such as stability, consumer expectations, and operational efficiencies, which can lead to discrepancies between market prices and theoretical equilibrium prices.