The buyer's reservation price of a particular good or service is the:
A)minimum amount the buyer would be willing to pay for it.
B)same as the market price.
C)maximum amount the buyer would be willing to pay for it.
D)price the buyer must pay to ensure he or she gets it.

Question

Quizplus · Accepted Answer

The buyer's reservation price is the maximum amount that a buyer is willing to pay for a good or service. It represents the point at which the buyer is indifferent between purchasing the good or service at that price or not purchasing it at all. It is also known as the maximum buying price.

The Buyer's Reservation Price of a Particular Good or Service