Why do businesses seek an equilibrium price?

Question

(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.

Answer 1

The correct response is:

It prevents shortages and surpluses by producing the right number of goods for the right price.

Businesses seek an equilibrium price because it balances supply and demand, ensuring there are neither excess goods (surplus) nor insufficient goods (shortage) in the market. This maximizes efficiency and profitability.