A consumer's willingness to pay directly measures
A)the extent to which advertising and other external forces have influenced the consumer's decisions regarding his or her purchases of goods and services.
B)the cost of a good to the buyer.
C)how much a buyer values a good.
D)consumer surplus.

Question

Quizplus · Accepted Answer

A consumer's willingness to pay is a measure of how much they value a good or service. It reflects the maximum amount they are willing to spend to acquire it. This concept is used in price setting and represents the highest price a seller can charge while still finding buyers for the good or service.

A Consumer's Willingness to Pay Directly Measures