Question

In the absence of risk-sharing, retailers aim for a lower level of product availability than would be required to maximize supply chain profits.

a) True
b) False

Answer 1

The statement “In the goods market, no seller would be willing to sell for less than the equilibrium price” is false because sellers may choose to lower their prices to attract more customers or during sales and promotions.

Step-by-step explanation:

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

In the goods market, the equilibrium price is determined by the intersection of the demand and supply curves. At the equilibrium price, the quantity demanded equals the quantity supplied, and there is no excess supply or excess demand in the market.

However, sellers in the goods market are often willing to sell for less than the equilibrium price in certain circumstances. For example, if a seller wants to attract more customers, they may choose to lower their prices. Additionally, during sales or promotions, sellers may temporarily reduce prices to stimulate demand and increase sales.