Final answer:
The statement suggesting that lower-priced merchandise remains unsold is false because pricing too low can create a perception of low quality, negating the purchase incentive. Economics also shows that customers may pay more than the equilibrium price due to brand loyalty or need, and sellers might sell for less due to excess supply or market strategies.
Step-by-step explanation:
The statement "Merchandise that is priced significantly lower than what customers expect to pay is likely to remain unsold" is generally false. Pricing strategies and consumer psychology are complex, and a variety of factors influence purchase decisions.
It's a common misconception that lower-priced goods will always attract buyers. However, if a product is priced too low, consumers may perceive it as low quality or associate it with other negative attributes, which might prevent them from making the purchase. In contrast, goods priced at or above customer expectations can imbue a sense of quality, value, and trustworthiness.
In the context of economics, pricing can also relate to the concept of equilibrium price, the price at which the quantity of goods supplied is equal to the quantity of goods demanded. The statement "In the goods market, no buyer would be willing to pay more than the equilibrium price" is also false. Buyers may be willing to pay more than the equilibrium price for reasons such as product differentiation, brand loyalty, immediate need, or perceived value.
Similarly, the claim "In the goods market, no seller would be willing to sell for less than the equilibrium price" is incorrect too. Factors like excess supply, the need to liquidate inventory, or entering a new market can lead sellers to price goods below the equilibrium price.