Question

If the price for widgets was set at $2.00 a) buyers would refuse to purchase enough widgets. b) producers would discover that the price was too high. c) buyers would purchase more widgets than are available. d) producers would discover that the price should be lowered.

Answer 1

The correct answer is A. If the price for widgets was set at $2.00, buyers would refuse to purchase enough widgets.

This would happen because, when the price rises, the demand tends to fall, because fewer people is willing to spend the necessary amount to acquire the product. In this way, fewer widgets would be sold.