A buyer is willing to buy 10 units of a good at a maximum price of $10 per unit.The reservation value of the buyer in this case is ________.
A) $1
B) $10
C) $20
D) $100

Question

Quizplus · Accepted Answer

The reservation value is the maximum amount a buyer is willing to pay for a good. In this case, the buyer is willing to pay a maximum of $10 for each unit of the good, so their reservation value is $10. Therefore, the best choice is B.

A Buyer Is Willing to Buy 10 Units of a Good