Final answer:
The statement about sellers not being willing to sell for less than the equilibrium price is false because sellers may have various motivations or market conditions pushing them to do so, such as clearing inventory, needing quick cash, or employing loss leader strategies. Option b
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 market conditions and seller motivations can lead to situations where sellers are indeed willing to sell below the equilibrium price.
These situations may include needing to clear out old inventory, facing cash flow problems that necessitate quick sales, or competition that drives prices down. The equilibrium price is a theoretical construct where the quantity demanded equals the quantity supplied, but actual market behavior can deviate from this ideal due to various factors.
Sellers may also use loss leader strategies, where they price goods below the equilibrium price to bring in customers with the hope that they will purchase other items at higher margins. Moreover, external conditions such as sudden changes in the market, supply shocks, or demand changes can force sellers to adjust their prices temporarily or permanently below equilibrium.
Additionally, not all markets operate at perfect efficiency. Monopolistic competition, oligopolies, and other market structures can experience price setting below equilibrium due to the strategic behaviors of the sellers involved. It is important to understand that the actual selling price can vary widely based on real-world complexities that are not fully encapsulated by a simple equilibrium model. option b