The maximum price a buyer is willing to pay for a good is called:
A)cost.
B)willingness to pay.
C)equity.
D)efficiency.

Question

The maximum price a buyer is willing to pay for a good is called:​
A)​cost.
B)​willingness to pay.
C)​equity.
D)​efficiency.

Quizplus · Accepted Answer

The maximum price a buyer is willing to pay for a good is called "willingness to pay". This is a fundamental concept in economics that represents the highest price a buyer is willing to pay for a unit of a good or service that they desire to have. It is determined by the buyer's preferences, needs, and budget constraints. Therefore, option B is the correct answer. Options A, C, and D are incorrect as they do not accurately represent the concept described in the question.

The Maximum Price a Buyer Is Willing to Pay for a Good