Question

If the price for widgets was set at $2.50

A)
buyers would purchase all of the available widgets.
B)
producers would discover that the price was too low,
buyers would purchase more widgets than are availab
D)
producers would discover that the price should be lowered

Answer 1

D)

producers would discover that the price should be lowered

Answer 2

Answer for this case study should be D (Producer would discover that the price should be lowered)

Explanation:

For point A- No matter how low the value of a special commodity is,the customer never wants to purchase that item more than necessary.

For point B- If the manufacture had come to know that the price was low ,they would have tried to change it so that the profit could be increased.

For point C- It's practically impossible for buyer to purchase more commodity than they are available, so that this fact is completely wrong.

For point D- If the manufacture knows that in some way the price of the commodity can be reduced further ,he will try to increase the quantity demanded of the commodity by doing so that he can earn maximum profit.