What is a reason that market prices are not always the same as equilibrium prices?
(1 point)
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.
1 answer
Market prices are influenced by various factors such as market power, government regulations, external shocks, and imperfect information. These factors can lead to market prices deviating from equilibrium prices.