At prices above a consumer's willingness to pay:
A) the opportunity cost of buying the good is less than the benefit received from having the good.
B) the opportunity cost of buying the good is greater than the benefit received from having the good.
C) the buyer will purchase the good and attempt to resell after receiving due benefit.
D) the buyer needs more income in order to buy the good.

Question

Quizplus · Accepted Answer

If the price of a good is above a consumer's willingness to pay, it means that the opportunity cost of buying the good (giving up other goods or services that could have been obtained with that money) is greater than the benefit received from having the good. Therefore, the consumer will not purchase the good.

At Prices Above a Consumer's Willingness to Pay