Asked by Dr. Oluwaseyi Martins on Sep 24, 2024
Verified
At the equilibrium price
A) only sellers who value the product more than the equilibrium price would be willing to sell
B) only buyers who value the product less than the equilibrium price would be willing to buy
C) only buyers who value the product more than the equilibrium price would be willing to buy
D) None of the parties would be willing to trade
Equilibrium Price
The price at which the quantity of goods supplied is equal to the quantity of goods demanded in a market, leading to market stability.
Buyers
Individuals or entities that acquire goods or services in exchange for money, playing a crucial role in the dynamics of supply and demand in markets.
Sellers
Individuals or entities that offer goods or services for sale to consumers or other businesses.
- Become familiar with the process by which market equilibrium is accomplished and the importance of departures from equilibrium.
Verified Answer
RS
Rawaha Siddiqui4 days ago
Final Answer :
C
Explanation :
At the equilibrium price, the quantity demanded by buyers is equal to the quantity supplied by sellers. Only those buyers who value the product more than the equilibrium price would be willing to buy because they see it as a good deal. On the other hand, only those sellers who value the product less than the equilibrium price would be willing to sell because they can make a profit selling it. Therefore, the correct answer is C, where only buyers who value the product more than the equilibrium price would be willing to buy.
Learning Objectives
- Become familiar with the process by which market equilibrium is accomplished and the importance of departures from equilibrium.