When Richard opened The Kite Hut,he charged $7 for kites and could not keep up with demand.The Kite Hut has raised the price to $10,and now Richard is still selling all the kites he carries,but he is not forced to reorder on a daily basis.The $10 price is probably which of the following?
A) a price equilibrium
B) an inelastic price
C) a symmetrical price
D) an inventory equalizer

Question

Quizplus · Accepted Answer

A price equilibrium occurs when the quantity demanded equals the quantity supplied, and in this case, Richard is still selling all the kites he carries at the $10 price, but is not forced to reorder on a daily basis. This suggests that the market has found a balance between supply and demand at the $10 price point.

When Richard Opened the Kite Hut,he Charged $7 for Kites