A buyer's reservation price for a product is equal to the _____ and the _____.
A)market equilibrium price; perfect discrimination price
B)product's marginal benefit to the buyer; maximum price the buyer would pay for the product
C)maximum price the customer would pay for the product; market equilibrium price
D)perfect discrimination price; the minimum price a customer would pay for the product

Question

Quizplus · Accepted Answer

A buyer's reservation price is the maximum price they are willing to pay for a product, which is based on the product's marginal benefit to the buyer. It is not necessarily equal to the market equilibrium price or the perfect discrimination price, and it is not always the same as the maximum price the customer would pay for the product.

A Buyer's Reservation Price for a Product Is Equal to the _____