Question

In a simultaneous one period game where both players prefer doing the opposite of what the opponent does, a Nash equilibrium does not exist

True.
False.

Answer 1

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 the goods market, equilibrium price is the price at which the quantity demanded is equal to the quantity supplied. However, in certain situations, buyers may be willing to pay more than the equilibrium price.

For example, during periods of high demand or scarcity, buyers may be willing to pay a premium price to obtain the goods they desire. Additionally, buyers may be willing to pay extra for goods that provide unique or additional benefits not available from alternative goods in the market.