A seller's willingness to sell:
A) must always be equal to a buyer's willingness to pay.
B) is determined by the opportunity cost of producing and selling the good.
C) is determined by a buyer's willingness to pay.
D) can never be higher than the market price.

Question

Quizplus · Accepted Answer

A seller's willingness to sell is determined by the opportunity cost of producing and selling the good. If the opportunity cost is too high, then the seller may not be willing to sell at a certain price point. The buyer's willingness to pay may influence the seller's decision, but it is not the sole determining factor. The market price is determined by the intersection of the supply and demand curves, which are influenced by both the willingness of buyers to pay and the willingness of sellers to sell.

A Seller's Willingness to Sell