If a producer offers a price that is in excess of a consumer's valuation of the good, the consumer:
A)must buy the good at that price.
B)will refuse to purchase the good.
C)must revalue the good.
D)none of the statements associated with this question are correct.

Question

Quizplus · Accepted Answer

If the producer offers a price that is higher than the consumer's valuation of the good, the consumer can refuse to purchase the good. The consumer may look for substitutes or wait for a better offer before making the purchase. It is not necessary for the consumer to revalue the good, as their valuation remains the same. Therefore, option B is the best choice.

If a Producer Offers a Price That Is in Excess