A buyer's willingness to pay is that buyer's ?
Correct answer: D. maximum amount they are willing to pay for a good
- A. minimum amount they are willing to pay for a good
- B. producer surplus.
- C. consumer surplus
- D. maximum amount they are willing to pay for a good
- E. none of these answers
Explanation
Willingness to pay is the maximum amount a buyer would give for a good. Consumer surplus is the difference between this maximum and the actual price paid.
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About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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