A consumer's willingness to pay additional money for time-saving goods depends primarily on _____
A)the opportunity cost of his or her time.
B)the wealth and property he or she possesses.
C)his or her social status.
D)the number of people in his or her household.
E)the distance between his or her home and workplace.

Question

Quizplus · Accepted Answer

A consumer's willingness to pay for time-saving goods depends on their opportunity cost of time, which is the value of the next-best alternative use of their time. For example, if a consumer could either spend an hour cooking dinner or pay extra for a pre-made meal, their willingness to pay for the pre-made meal would depend on how much they value that hour of their time.

A Consumer's Willingness to Pay Additional Money for Time-Saving Goods