How do businesses determine the equilibrium price of a good or service?
A. They set a price where the demand matches the quantity they are willing to supply.
B. They set a price that matches the expenses they take on to create supply.
C. They set a price where the demand exceeds the quantity they are willing to supply.
D. They set a price where the demand is less than the quantity they are willing to supply.

Question

GinnyAnswer · Answer

Businesses determine equilibrium price where demand equals supply. This is essential in balancing what consumers want with what producers are willing to offer. The equilibrium price is crucial for optimal market efficiency. ;

Answered by GinnyAnswer | 2025-07-03

Anonymous · Answer

Businesses set the equilibrium price where the quantity demanded by consumers equals the quantity supplied by producers. This balance is essential for market efficiency. The correct option is A. 
 ;

Answer (2)

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