Question

When Smashburger founder Tom Ryan discusses the challenges the company had finding the right price​ point, he mentions that if the price was too​ high, there​ wouldn't be enough demand to justify the price point. This is known as​ __________.

Answer 1

This known as MARKET EQUILIBRIUM. A Market Equilibrium is an intersection where the demand and supply in a particular market meets. The prices of goods and services are set to the amount of supply that a company can provide. If the prices are too high, consumers are not encouraged to buy products, therefore the equilibrium will experience an imbalance.