A consumer's willingness to pay:
A)is the maximum price that a buyer would be willing to pay for a good or service.
B)is the minimum price that a buyer would be willing to pay for a good or service.
C)is their reserved maximum bid-price.
D)must always equal the seller's willingness to sell.

Question

Quizplus · Accepted Answer

A consumer's willingness to pay is the maximum price that they would be willing to pay for a good or service. This is influenced by various factors such as their income, preferences, and perceived value of the product. It is not the minimum price they would be willing to pay (B), nor is it always equal to the seller's willingness to sell (D). Reserved maximum bid-price (C) is a term typically used in auction settings and does not fully capture the concept of willingness to pay in a general sense.

A Consumer's Willingness to Pay