The reservation value of a buyer reflects her ________.
A) willingness to pay for a good or service
B) trade-off between buying various goods and services
C) total utility from a good or service
D) total income

Question

Quizplus · Accepted Answer

The reservation value of a buyer reflects the maximum amount that she is willing to pay for a good or service. It is the amount that the buyer values the good or service, and is willing to give up in exchange for it.

The Reservation Value of a Buyer Reflects Her ________