Question

2.
(excess demand or supply) persist in a market economy?
Why would a firm set a price for the product or service it sells below equilibrium if this means
selling a smaller quantity at a lower price (and hence making a lower profit, or even incurring a
loss, than by selling the product or service at the equilibrium price)?
What determines if the firm gains (and therefore has an incentive) to set the price below the
3​

Answer 1

Answer:

2.

(excess demand or supply) persist in a market economy?

Why would a firm set a price for the product or service it sells below equilibrium if this means

selling a smaller quantity at a lower price (and hence making a lower profit, or even incurring a

loss, than by selling the product or service at the equilibrium price)?

What determines if the firm gains (and therefore has an incentive) to set the price below the

3