If the price for widgets was set at $4 A) buyers would purchase all of the available widgets. B) producers would discover that the price was too low. C) buyers would purchase more widgets than are available. D) producers would discover that the price should be lowered.
Business · High School · Mon Jan 18 2021
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If the price for widgets was set at $4:
A) Buyers would purchase all of the available widgets.
At a price of $4, assuming there's a supply available, buyers would purchase all the widgets because the price is below the equilibrium price (where supply meets demand). This situation typically results in excess demand where consumers want to buy more than what's available at that price. This leads to a shortage, as buyers would want to purchase all available widgets at that price, creating unsatisfied demand.