When a market is in equilibrium but too high for some consumers:
A)the government will intervene to set the correct prices
B)the price determines which buyers and sellers participate in the market, and those unable to afford the good will opt out
C)those buyers who value the good less than the price choose to buy the good
D)those sellers whose costs are more than the price choose to produce and sell the good

Question

Quizplus · Accepted Answer

In a market that is in equilibrium at a high price, those consumers who cannot afford the good will choose not to participate, while those who value the good more than the price will continue to buy it. The price acts as a mechanism to signal which buyers and sellers will participate in the market, based on their willingness to pay or produce at that price level. The government does not need to intervene in this situation, as the market is functioning efficiently based on supply and demand.

When a Market Is in Equilibrium but Too High for Some