The maximum price a consumer is willing to pay for a good is the
A)consumer surplus.
B)value of the good.
C)opportunity cost of producing the good.
D)minimum supply-price.
E)marginal cost of the good.

Question

Quizplus · Accepted Answer

The maximum price a consumer is willing to pay for a good is the value the consumer places on that good. It represents the highest amount the consumer is willing to sacrifice from their current consumption bundle in order to obtain that good. Therefore, the correct answer is B, value of the good.

The Maximum Price a Consumer Is Willing to Pay for a Good