Question

Explain why the following statement is false: “In the goods market, no seller would be willing to sell for less than the equilibrium price.”

Short answer

Because there will be suppliers eager to sell their goods even at reduced costs, the given statement is false.

Step-by-step solution

Definition

Market:

In economics, a market is defined as a gathering of people who come together to enable the exchange of goods and services among themselves. It usually involves both buyers and sellers.

Explanation

The stated statement is false since there would be suppliers eager to offer their goods even at decreased prices. It is not necessary for the number of buyers and sellers to be equal at the equilibrium price. As a result, sellers in these markets will be eager to sell these goods even if prices are falling.