The maximum price that a consumer is willing to pay for a good is called:
A) the reservation price.
B) the market price.
C) the first-degree price.
D) the block price.
E) the choke price.

Question

Quizplus · Accepted Answer

The reservation price is the maximum price a consumer is willing to pay for a good. This represents the value that the consumer places on the good and is an important factor in determining market demand. The market price is the price at which the good or service is actually being sold in the market, while the other options (first-degree price, block price, choke price) are not commonly used terms in economics.

The Maximum Price That a Consumer Is Willing to Pay