Multiple Choice
Which term describes the idea that not all individuals prefer an equal ratio of outputs to incomes?
72
views
0. Basic Principles of Economics
Introduction to Economics
Multiple Choice
Which of the following actions by an agent would most likely upset the sellers in a market?
A
Accepting the listed price without negotiation
B
Offering a price significantly lower than the market equilibrium price
C
Providing positive feedback about the product
D
Purchasing goods in bulk at the posted price
Verified step by step guidance1
Step 1: Understand the concept of market equilibrium price, which is the price at which the quantity of goods buyers want to buy equals the quantity sellers want to sell.
Step 2: Recognize that sellers prefer transactions at or above the equilibrium price because it maximizes their revenue and profits.
Step 3: Analyze each action from the perspective of sellers: accepting the listed price, providing positive feedback, purchasing in bulk at the posted price, and offering a price significantly lower than the equilibrium price.
Step 4: Identify that offering a price significantly lower than the market equilibrium price means the buyer is trying to pay less than what sellers expect, which can reduce sellers' profits and upset them.
Step 5: Conclude that among the options, offering a price significantly lower than the market equilibrium price is the action most likely to upset sellers because it threatens their expected earnings.
Related Videos
Related Practice
