question archive As the market price of a service increases, more potential sellers will decide to perform that service because: a
As the market price of a service increases, more potential sellers will decide to perform that service because: a
Subject:EconomicsPrice:2.88 Bought3
As the market price of a service increases, more potential sellers will decide to perform that service because:
a. higher prices result in higher revenue.
b. more potential sellers will find that the market price exceeds their reservation price.
c. it's more prestigious to produce high-priced services.
d. higher prices lead to lower opportunity costs.
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The correct option is a. higher prices result in higher revenue.
Explanation:
Potential sellers are the producers who have complete or advanced knowledge of market behavior. Increased prices of services will encourage these sellers to perform such services in the market. It is because increased prices will provide higher revenue to sell the same level of output in the economy.
