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Explain Why The Following Statement Is False Essay

353 Words2 Pages
38. Explain why the following statement is false: “In the goods market, no seller would be willing to sell for less than the equilibrium price.” To answer this question, we must first look at what the equilibrium price actually is. The equilibrium price is the price at which the quantity demanded agrees or equals the quantity supplied. Now, there is a scenario in which sellers would be willing to sell below the equilibrium price. This happens when there is a surplus or excess supply of the product that is not selling. At that point, sellers need to sell, so they price low to create a demand. When the demand hits and buyers are purchasing, sellers will raise the price towards and above equilibrium to make better profits. A great example

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