ECONOMICS
CONSUMERS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
value the good more than price.
|
|
|
value the good less than price.
|
|
|
have the money to buy the good.
|
|
|
consider the good a necessity.
|
Detailed explanation-1: -At the market equilibrium price: a. Buyers who value the product more than the equilibrium price will purchase the product; those who do not will not purchase the product. In other words, the free market allocates the supply of a good to the buyers who value it most highly, as measured by their willingness to pay.
Detailed explanation-2: -The equilibrium price is the only price where the plans of consumers and the plans of producers agree-that is, where the amount consumers want to buy of the product, quantity demanded, is equal to the amount producers want to sell, quantity supplied. This common quantity is called the equilibrium quantity.
Detailed explanation-3: -If the price of a good is above equilibrium, this means that the quantity of the good supplied exceeds the quantity of the good demanded. There is a surplus of the good on the market.
Detailed explanation-4: -Equilibrium price. When a product exchange occurs, the agreed upon price is called an equilibrium price, or a market clearing price. Graphically, this price occurs at the intersection of demand and supply as presented in Image 1.
Detailed explanation-5: -The quantity bought and sold at the equilibrium price is also called the market-clearing price. When the quantity supplied and the quantity demanded at a specific price are equal, the equilibrium price and quantity match, and the market clears.