Final answer:
Buyers can be willing to pay more than the equilibrium price in the goods market.
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 a free market, buyers can be willing to pay more than the equilibrium price for several reasons:
- If the good has limited availability or is in high demand, buyers may be willing to pay a premium to obtain it.
- If the buyer values the good more than the equilibrium price, they may be willing to pay extra to secure it.
- If there is a shortage of supply, buyers may engage in bidding wars, driving the price above the equilibrium level.
Therefore, it is incorrect to assume that no buyer would be willing to pay more than the equilibrium price in the goods market.