Final answer:
The statement regarding purchase discounts is false because such discounts are usually calculated only on the goods' purchase price and not on the transportation cost. The assertion that buyers won't pay more than the equilibrium price in the goods market is also false, as various factors can lead to buyers paying a premium. 'Consumer surplus' is the term an economist would use when a shopper gets a 'good deal'.
Step-by-step explanation:
Understanding Purchase Discounts
The statement is false. Purchase discounts are typically calculated only on the price of the goods purchased, not on the transportation cost. Transportation costs are usually considered separate from the purchase price of goods. A purchase discount is a reduction in the invoice price granted by the seller to the buyer when payment is made within a specified period. This discount is a way to encourage early payment and improve the seller's cash flow. In instances where the purchaser is responsible for transportation costs, these costs are typically not subject to the purchase discount unless specifically agreed upon between the buyer and seller.
Equilibrium Price in Goods Market
The statement that "In the goods market, no buyer would be willing to pay more than the equilibrium price" is false because there may be circumstances where a buyer is willing to pay a premium price. This can occur due to factors such as product differentiation, brand preference, urgency of need, perceived value, or a lack of available substitutes. The equilibrium price is commonly understood as the price at which the quantity of goods supplied equals the quantity demanded, but market dynamics can lead to situations where buyers pay above this price.
Economic Term for 'Good Deal'
When a shopper gets a 'good deal' on a product, an economist might describe this as 'consumer surplus.' Consumer surplus occurs when the price that consumers are willing to pay for a product or service is higher than the actual market price they end up paying. This difference represents the extra satisfaction or value the consumer gains from purchasing the product at a lower price than they were prepared to pay.