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T/F: 2. If inventory is sold with terms of FOB shipping point, the goods belong to the seller while in transit.

User Sjeijoet
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1 Answer

7 votes

Final answer:

The statement is false because there are scenarios where sellers may be willing to sell for less than the equilibrium price in the goods market.

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 by buyers equals the quantity supplied by sellers. However, there can be sellers who are willing to sell their goods for less than the equilibrium price.

For example, during a clearance sale, a seller may choose to reduce prices below the equilibrium price to attract more buyers and clear out excess inventory. Another scenario is when there is a surplus of goods where sellers may lower their prices to stimulate demand and sell their products. In both cases, the sellers are willing to sell for less than the equilibrium price.

Therefore, it is incorrect to say that no seller would be willing to sell for less than the equilibrium price in the goods market.