Asked by Taniya Banks on Jun 01, 2024
Verified
In the market for used cars we have 10 sellers,willing to sell at the prices of $1000,$2000,$3000,$4000,$5000,$6000,$7000,$8000,$9000,$10000.What could the market price be in order to induce five sellers to offer their cars for sale?
A) $4001
B) $5001
C) $6001
D) $7001
Market Price
The current price at which an asset or service can be bought or sold in a particular marketplace.
Sellers
Individuals or entities that offer goods or services for sale in the market.
- Recognize how market equilibrium is achieved and the implications of deviations from equilibrium.
Verified Answer
CG
Christopher GreenfieldJun 04, 2024
Final Answer :
B
Explanation :
To induce five sellers to offer their cars for sale, the market price needs to be just above the fifth lowest price, which is $5000. Therefore, $5001 is the correct answer as it would motivate the sellers of cars priced at $1000, $2000, $3000, $4000, and $5000 to sell.
Learning Objectives
- Recognize how market equilibrium is achieved and the implications of deviations from equilibrium.