Question

True or false: the effect of the tax on the quantity sold would have been the same as if the tax had been levied on producers.

Answer 1

Buyers can be willing to pay more than the equilibrium price in the goods market under certain circumstances.

Step-by-step explanation:

The statement is false. In the goods market, buyers can be willing to pay more than the equilibrium price under certain circumstances.

For example, if a good becomes scarce or there is high demand, buyers may be willing to pay a premium price to secure the goods. This can often be seen during times of limited supply or during special events or auctions where the demand for a particular item is high.