Question

The assumption that customers are required to buy a product at whatever price the seller deems appropriate is known as the costing approach to pricing.

a) True
b) False

Answer 1

The statement "In the goods market, no seller would be willing to sell for less than the equilibrium price" is false. Sellers may be willing to sell for less than the equilibrium price due to competition, excess inventory, or pricing strategy.

Step-by-step explanation:

The statement "In the goods market, no seller would be willing to sell for less than the equilibrium price" is false. In the goods market, the equilibrium price is the price at which the quantity demanded is equal to the quantity supplied. However, sellers may be willing to sell for less than the equilibrium price for various reasons:

1. Competition: If there is intense competition among sellers, they may lower their prices to attract more customers and gain a competitive advantage.
2. Excess inventory: If sellers have excess inventory that they need to get rid of quickly, they may be willing to sell at a lower price to sell off the inventory.
3. Pricing strategy: Sellers may intentionally set their prices below the equilibrium price as part of their pricing strategy to increase sales volume or capture market share.

Therefore, it is not accurate to assume that no seller would be willing to sell for less than the equilibrium price in the goods market.