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It is best to ask the customer how much they make and can afford to spend before showing them a product. True or False

User Orfa
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1 Answer

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Final answer:

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

Step-by-step explanation:

The statement is false. In the goods market, buyers are generally willing to pay more than the equilibrium price under certain circumstances. One such circumstance is when the buyer perceives the product to have higher value or quality than the equilibrium price suggests. For example, a buyer might be willing to pay more for a luxury brand product compared to a generic brand, even if both products are in equilibrium in the market. Additionally, scarcity or limited availability of a product can also drive buyers to pay more than the equilibrium price.

User Jimzie
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