35.0k views
1 vote
Demand collection systems that allow consumers to name the price they are willing to pay to bid on goods are likely to increase. True or False?

User Dolphiniac
by
7.4k points

1 Answer

2 votes

Final answer:

The statement that no buyer would be willing to pay more than the equilibrium price in the goods market is false.

Step-by-step explanation:

In reality, there can be buyers who are willing to pay a higher price for a good. This can happen when there is a shortage in the market, and buyers are willing to pay a premium to secure the limited supply of the good. For example, during a high-demand period such as Black Friday sales, buyers may be willing to pay more than the equilibrium price to secure popular items.

In such cases, demand collection systems that allow consumers to name the price they are willing to pay to bid on goods can be beneficial. These systems create competition among buyers and enable sellers to capture the highest possible price for their goods.

Therefore, the statement that demand collection systems allowing consumers to name the price they are willing to pay to bid on goods are likely to increase is true, as they can maximize the potential revenue for sellers and offer buyers the opportunity to purchase goods at a price they are willing to pay.

User Cdel
by
8.7k points