Willingness to pay measures
A) the maximum price a buyer is willing to pay for a product minus the amount the buyer actually pays for it.
B) the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept for the good.
C) the maximum price that a buyer is willing to pay for a good.
D) the maximum price a buyer is willing to pay minus the minimum price a seller is willing to accept.

Question

Quizplus · Accepted Answer

Willingness to pay measures the maximum price that a buyer is willing to pay for a good. Option A is incorrect because it subtracts the actual amount paid from the maximum price, which is not necessary to determine willingness to pay. Option B is the definition of seller's surplus. Option D combines both willingness to pay and seller's surplus, but does not specifically define willingness to pay.

Willingness to Pay Measures