At prices below a consumer's maximum willingness to pay:
A)the buyer will participate in the market because the opportunity cost is less than the benefit from having the good.
B)the buyer will participate in the market because the opportunity cost is more than the benefit from having the good.
C)the buyer will not participate in the market because the opportunity cost is less than the benefit from having the good.
D)the buyer will not participate in the market because the opportunity cost is more than the benefit from having the good.

Question

Quizplus · Accepted Answer

When the price of a good is below a consumer's maximum willingness to pay, it means that the benefit of having the good is greater than the opportunity cost (the price paid to acquire the good). Therefore, the consumer will participate in the market because the opportunity cost is less than the benefit from having the good.

At Prices Below a Consumer's Maximum Willingness to Pay