The maximum price that a buyer would be willing to pay for a good or service is also called:
A) the reservation price.
B) the buyer-max price.
C) the reserved max price.
D) the opportunity cost.

Question

Quizplus · Accepted Answer

The term "reservation price" refers to the maximum price that a buyer is willing to pay for a good or service. This is the highest amount that they would be willing to spend, beyond which they would rather not make the purchase. The other options are not accurate descriptions of this concept.

The Maximum Price That a Buyer Would Be Willing to Pay