A consumer's willingness to pay:
A) is the maximum price that a buyer would be willing to pay for a good or service.
B) is the minimum price that a buyer would be willing to pay for a good or service.
C) is his or her reserved minimum bid-price.
D) must always equal the seller's willingness to sell.

Question

Quizplus · Accepted Answer

A consumer's willingness to pay is the maximum amount that they are willing to pay for a good or service, indicating their perceived value of the product. Therefore, option A is correct. Option B is incorrect, as it refers to the buyer's willingness to accept, which is the minimum price at which they would sell the good or service. Option C refers to auction scenarios and is not necessarily applicable in other situations. Option D is incorrect, as the seller's willingness to sell may be higher or lower than the buyer's willingness to pay.

A Consumer's Willingness to Pay