Assume that a seller in a perfectly competitive market charges more than the equilibrium price.It is likely that this seller will ________.

Question

Quizplus · Accepted Answer

In a perfectly competitive market, all sellers charge the same price which is determined by the equilibrium of supply and demand. If a seller charges more than the equilibrium price, their product will be more expensive than that of their competitors, making it unattractive for buyers. Consequently, the seller is likely to lose almost all of their buyers, resulting in a significant decrease in sales and revenue. Therefore, option D is the correct answer.

Assume That a Seller in a Perfectly Competitive Market Charges