Which best describes the equilibrium price in the relationship between supply and demand?

a. Andre told us, "demand is highest when there are more widgets to sell; if you don't have widgets, how can people buy them?"

b. Hank said, "we can charge whatever the market will bear."

c. Shauna told her employees, "the company is only sending one fuel truck per week now, so the price is going up. It's like they're rationing us."

d. Dave said, "man, there are so many laptops out there they don't know what to do with them! They're a dime a dozen now."?

Question

Aaron Sims

Business

23 May, 18:30

Which best describes the equilibrium price in the relationship between supply and demand?

a. Andre told us, "demand is highest when there are more widgets to sell; if you don't have widgets, how can people buy them?"

b. Hank said, "we can charge whatever the market will bear."

c. Shauna told her employees, "the company is only sending one fuel truck per week now, so the price is going up. It's like they're rationing us."

d. Dave said, "man, there are so many laptops out there they don't know what to do with them! They're a dime a dozen now."?

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Aryana Yates · Answer 1

Answer: d. Dave said, "man, there are so many laptops out there they don't know what to do with them! They're a dime a dozen now."

In economics, the equilibrium price in the relationship between supply and demand is that price where the quantity of goods supplied equals the quantity of goods demanded.

When the supply of a product increases, all else remaining the same, the price must fall in order to increase the demand for that product and reach equilibrium.

In the first part of his sentence, Dave acknowledges that there is excess supply of laptops in the market. In the second part, he also says that prices have fallen by a lot in order to induce demand for laptops.