Question

Which of the following statements is FALSE regarding the self-regulation of the market? A. Producers are motivated by self-interest to produce a product. B. Producers will increase their prices if they have too many on hand. C. Producers are motivated to provide products that consumers want. D. Producers will sell products at lower prices in order to compete against other producers and sell their products.

Answer 1

It makes no sense to raise your prices when you have to much product. I've seen lots of inventory reduction sales. Never seen an inventory reduction price increase. Go with B.

Answer 2

Answer:

B. Producers will increase their prices if they have too many on hand.

Explanation:

A self-regulated market is marked in which the parts create their regulations without the interference of the States or Nations.

The market should regulate itself by supply and demand of the customers and producers. So there is no correlation between the idea of having too many products and try to sell them at a major price. That is why option B is false regarding the self-regulation of the market.

I hope this answer helps you.