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Is the following statement true or false regarding the calculation of the seller's amount realized in a transaction?

A) True
B) False

User Jsheffers
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1 Answer

2 votes

Final answer:

The statement is false; sellers might sell below the equilibrium price to clear inventory, due to liquidation, competition, or external market factors.

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 because there can be various reasons why a seller might choose to sell goods at a price lower than the equilibrium. For instance, a seller may want to clear excess inventory quickly, may be facing liquidation issues, or could be competing in a different market segment that is more price-sensitive. There's also the possibility that there are external factors affecting the market, such as a sudden change in consumer preferences, the introduction of a new and more efficient technology, or regulatory changes, which could have an impact on transaction prices and push them below equilibrium.

User Apparatix
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