Question

A producer charges $500 for a cell phone, but buyers are not buying any cell phones at this price. So at this price, the producer is willing to supply _____ phones, and consumers are willing to buy _____ phones.

Answer 1

Alot and none because they have to have more than one phone to sell and the people that are trying to buy some said that dont want to buy any at that price

Answer 2

more

less

Step-by-step explanation:

In a market economy, producers and consumers interact in the goods and services market. Producers tend to offer larger quantities when prices are high as this will increase profit. On the contrary, consumers will be willing to buy less when the price is high, and buy more when the price is low. Thus, price becomes the adjustment vector of this interaction. At some point the price charged will please both suppliers and consumers when the economy has found the equilibrium price.