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True or false: Market value is usually lower than book value

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User Chyna
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1 Answer

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Final answer:

Buyers can be willing to pay more than the equilibrium price in certain situations in the goods market.

Step-by-step explanation:

The given statement is false. In the goods market, buyers can be willing to pay more than the equilibrium price in certain situations. The equilibrium price is determined by the intersection of the demand and supply curves. If the demand for a good suddenly increases, causing a shortage, buyers may be willing to pay more to secure the limited supply. This can happen, for example, during times of high demand or for goods with limited availability.

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User Nasreddine
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