When Richard opened The Kite Hut,he charged $7 for kites and could not keep up with the 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 a(n):
A) supply schedule
B) symmetrical price
C) price equilibrium
D) inventory equalizer
E) inelastic price

Question

Quizplus · Accepted Answer

The $10 price is likely a price equilibrium, where the supply and demand for kites have found a balance. Richard is selling all the kites he carries but is not constantly having to restock due to increased demand. This suggests that the price is high enough to both cover costs and generate profit while not being so high that customers are no longer willing to buy kites. Therefore, the price is likely in equilibrium. The other choices do not accurately describe the situation described in the scenario.

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