Question

You sell jeans in a market without price controls. You want to charge the _____ price so consumers will demand all the jeans you supply.
A.) highest
B.) lowest
C.) equilibrium

Answer 1

The correct answer is C) equilibrium.

You sell jeans in a market without price controls. You want to charge the equilibrium price so consumers will demand all the jeans you supply.

You want to sell your jeans and make a good profit, right? Then you have to charge the equilibrium price to do so. When using the equilibrium price, the demand for the service or the product is the same as the supply of both. This means that when your clients approach you, wanting to buy jeans and are informed of the price, they are going to be satisfied with the price they have to pay and you too are going to be OK with the price of selling.

Answer 2

I think it is B. (95% sure)