Businesses seek an equilibrium price because it prevents shortages and surpluses by producing the right number of goods for the right price. This balance helps ensure that supply meets demand, leading to a more stable market environment.
Question
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.
3 answers
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The correct response is:
It prevents shortages and surpluses by producing the right number of goods for the right price.
1 answer