Question

The seller is not required to recognize Sales Discounts until the purchaser of those goods pays within the discount period.

A. True
B. False

Answer 1

The statement is false because buyers are generally willing to pay up to the equilibrium price for a good, but they will not pay more than that.

Step-by-step explanation:

The statement “In the goods market, no buyer would be willing to pay more than the equilibrium price” is false.

In the goods market, the equilibrium price is determined by the intersection of the supply and demand curves. Buyers are generally willing to pay up to the equilibrium price for a good, but they will not pay more than that because the market forces of supply and demand would not support a higher price.

For example, if the equilibrium price for a smartphone is $500, buyers may be willing to pay $500 or less for that phone. However, if a seller tries to charge $600 for the same phone, there may not be enough demand at that price, and buyers would likely look for alternatives or negotiate a lower price. The equilibrium price represents the market-clearing price where supply matches demand.