Question

"For Japanese firms that have high levels of operating and financial leverage, maintaining sales volume is of critical importance even at the cost of price.

A True
B False"

Answer 1

Sellers may be willing to sell for less than the equilibrium price in the goods market in certain situations, making the statement false.

Step-by-step explanation:

The statement is false. In the goods market, sellers may be willing to sell for less than the equilibrium price under certain circumstances. One reason for this is when there is excess supply in the market, meaning there is more quantity supplied than quantity demanded at the equilibrium price. In this situation, sellers may choose to lower their prices in order to sell their goods and reduce their inventory. Another reason is if sellers want to attract more customers or gain market share, they may offer discounts or lower prices than the equilibrium price.

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