The prices that people are willing to pay for goods and services mostly depend on:

Question

Quizplus · Accepted Answer

The willingness to pay for goods and services depends on the marginal utility derived from the goods. Marginal utility is the additional satisfaction or usefulness that a consumer derives from consuming one more unit of a good or service. As the consumer consumes more units of a good, the marginal utility decreases, leading to a decrease in the willingness to pay for the good. Therefore, the price that people are willing to pay for a good or service is directly related to the marginal utility derived from the good or service.

The Prices That People Are Willing to Pay for Goods