Question

The "over-the-counter" market received its name years ago because brokerage firms would hold inventories of stocks and then sell them by literally passing them over the counter to the buyer.

a) True
b) False

Answer 1

The statement is false because sellers in the goods market may be willing to sell for less than the equilibrium price depending on market conditions.

Step-by-step explanation:

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

When the supply of goods is higher than the demand, sellers may lower their prices to attract buyers and clear their inventory. This is known as a surplus. On the other hand, when the demand for goods is higher than the supply, sellers may raise their prices to maximize profit. This is known as a shortage.

Therefore, in the goods market, sellers can be willing to sell for less than the equilibrium price depending on the market conditions.