Which of the following statements is FALSE regarding the self-regulation of the market? A. Producers are motivated by self-interest to produce a product. B. Producers will increase their prices if they have too many on hand. C. Producers are motivated to provide products that consumers want. D. Producers will sell products at lower prices in order to compete against other producers and sell their products.

Question

Which of the following statements is FALSE regarding the self-regulation of the market? 	A.	Producers are motivated by self-interest to produce a product. 	B.	Producers will increase their prices if they have too many on hand. 	C.	Producers are motivated to provide products that consumers want. 	D.	Producers will sell products at lower prices in order to compete against other producers and sell their products.

wwhitlock · Answer

It makes no sense to raise your prices when you have to much product. I've seen lots of inventory reduction sales. Never seen an inventory reduction price increase. Go with B.