A consumer's willingness to pay depends on the:
A)cost of producing a given good or service.
B)expected additional benefit of consuming a given good or service.
C)size of the shortage of a given good or service.
D)size of the surplus of a given good or service.

Question

Quizplus · Accepted Answer

A consumer's willingness to pay is based on the expected additional benefit they will receive from consuming a good or service. This can be influenced by factors such as personal preferences, income, and the availability of substitutes. The cost of producing the good or service, size of shortages or surpluses, while they may affect prices, do not directly impact a consumer's willingness to pay.

A Consumer's Willingness to Pay Depends on The