The minimum price that a seller is willing to accept for his product and the maximum price a buyer is willing to pay for the product are referred to as their:
A) bid prices.
B) reservation prices.
C) offer prices.
D) aspiration prices.
E) take it or leave it offers.

Question

Quizplus · Accepted Answer

Bid prices refer to the price offered by a buyer in an auction, offer prices refer to the price set by a seller to sell their product, aspiration prices refer to an individual's ideal price for a good or service that may not be realistic, and take it or leave it offers refer to a seller setting a non-negotiable price. Reservation prices, on the other hand, refer to the minimum price a seller is willing to accept and the maximum price a buyer is willing to pay, which represents their "reservation" or bottom-line price. Therefore, the answer is B.

The Minimum Price That a Seller Is Willing to Accept