Answer:
the equilibrium price but not above or below the equilibrium price.
Explanation:
At equilibrium price, quantity demanded equals quantity supplied. At this point, buyers are able to buy all they want to buy and sellers are able to sell all they want
Above equilibrium price, there would be a surplus. the quantity supplied would exceed the quantity demanded. Sellers would not be able to sell all they want in this case
Below the equilibrium price, there would be a shortage. the quantity demanded would exceed the quantity supplied. buyers would not be able to buy all they want
Answer: d)Firms have to pay more to attract inputs, as these inputs have to share the risk.
Explanation: When the market system tries to put restriction on the business risk to owner and other investors , the firms have to give more payment to attract them to market business.
The chances of risk have have to be shared by both the parties so the owners or investors are going to indulge in the business when they gain some benefit e.g.-more payment.
Other options are incorrect because entrepreneurship will not be encouraged through this process. Incomes will not be distributed equally and neither the prudent risk management will be aimed.Thus, the correct option is option(d).
