Final answer:
The statement about buyers not paying more than the equilibrium price is false because of premium pricing during shortages, high demand, and personal valuations. Likewise, sellers sometimes sell below the equilibrium price to clear stock, attract customers, and stay competitive.
Step-by-step explanation:
The statement “In the goods market, no buyer would be willing to pay more than the equilibrium price” is false because buyers may sometimes be willing to pay more for certain reasons. One scenario occurs when there is a perceived shortage or when a product is in high demand and low supply, like in the case of limited edition items or during a crisis situation. Buyers might fear not getting the product later or may value it more due to scarcity, leading them to pay a premium. Additionally, personal valuations of a product may vary; some consumers place a higher value on specific qualities like brand reputation, quality, or prestige, and thus are willing to pay above the equilibrium price.
On the other side, the statement “In the goods market, no seller would be willing to sell for less than the equilibrium price” is also incorrect. While the equilibrium price is the price at which quantity supplied equals quantity demanded, sellers might sell at lower prices due to various reasons such as clearing excess stock, attracting more customers, or responding to competitive pricing from other sellers. Seasonal discounts, promotions, and the need to sell perishable goods quickly before they lose value are other circumstances where goods are sold below the equilibrium price.