Question

In a free-market economic system, if consumers perceive the price for a state-of-the-art smartphone as too high for the value received, they are likely to avoid buying it. In the samelight, if the __________.a) seller’s price is too low, consumers will definitely consider it of poor quality b) consumer’s desired price is too low, producers will want to produce an abundance of the product c)consumer’s desired price is too low, producers may limit the amount produced d)consumer’s desired price is too low, producers will refuse to make a substitute

Answer 1

Answer:

c)consumer’s desired price is too low, producers may limit the amount produced 

Explanation:

In a free market economy, price and quantity produced is determined by the forces of demand and supply. If there's a disequilibrium in the market, market forces bring about equilibrium.

In this question, there's a disequilibrium; there seems to be excess supply. To restore equilibrium, supply has to fall so equilibrium can be restored.

I hope my answer helps you.