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Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383

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BuyFindarrow_forward

Economics (MindTap Course List)

13th Edition
Roger A. Arnold
ISBN: 9781337617383
Textbook Problem

Do buyers prefer lower prices to higher prices?

To determine

The price preferred by buyers.

Explanation

Yes, the buyer would prefer lower prices for the commodity when all other factors remain constant. It is known that the price is not the only factor that influences the welfare of the consumer. The quality, services, and delivery are also important concern of the consumer. This can be illustrated with an example. Suppose the government introduces price ceiling for gasoline, which reduces its price. The reduction in price leads to an increase in the demand for the commodity. This would make the sale of the commodity on the basis of first come, first serve...

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