A seller's willingness to sell:

Multiple Choice

is the maximum price that a seller is willing to accept in exchange for a good or service.
is the minimum price that a seller is willing to accept in exchange for a good or service.
must always equal the buyer's willingness to buy.
is always greater than the buyer's willingness to pay.

Expert Solution

Answer
Option 2
A seller's willingness to sell is a minimum price a seller willing to accept for the good
Buyer willingness to pay is a maximum price buyer willing to pay.

Rahul Sunny answered 2 years ago

What is “willingness to pay” and “willingness to sell”? How is willingness to pay/sell related to consumer and producer surplus?

What is “willingness to pay” and “willingness to sell”? How is willingness to pay/sell related to consumer and producer surplus? Under what conditions can it be said that economic welfare is maximized? What is meant by an “efficient allocation of resources”?

What is the difference between willingness to accept and willingness to pay? For a trade to...

What is the difference between willingness to accept and willingness to pay? For a trade to take place what is the necessary relationship between these two? Explain your answer.

Consider the topics of Willingness to Pay and Willingness to Accept. While initially the discipline assumed...

Consider the topics of Willingness to Pay and Willingness to Accept. While initially the discipline assumed that the two values should be nearly equal, this has not seemed to be the case. Describe the observed difference between WTA and WTP in practice. Describe two potential reasons that these values would diverge. Are there situations where it makes sense to use one measure over another?

Short Answer: (a) Define willingness to pay (WTP) and willingness to accept (WTA) and (b) explain...

Short Answer: (a) Define willingness to pay (WTP) and willingness to accept (WTA) and (b) explain why it is likely that these may not be equal. (There are several different explanations for this difference – you just need to provide one of these.) Keywords: Econ, economics, environmental economics

A buyer's agent represents the buyer, and the seller's agent represents the broker.

A buyer's agent represents the buyer, and the seller's agent represents the broker. True False

Define the concepts: maximum Willingness to Pay (WTP), minimum Willingness to Accept Compensation (WTA). In your...

Define the concepts: maximum Willingness to Pay (WTP), minimum Willingness to Accept Compensation (WTA). In your definitions, explain these concepts of compensating variation and equivalent variation. Explain their relevance in terms of property rights assumed in environmental policy decisions. Are these concepts equal? How are these related to consumer surplus?

The seller's remaining mortgage shown on a closing statement would be shown as Debit to the...

The seller's remaining mortgage shown on a closing statement would be shown as Debit to the seller, credit to the buyer Credit to the seller Credit to the seller, debit to the buyer Debit to the seller

True or False? 1. The seller's basic obligation under the UCC is to transfer and deliver...

True or False? 1. The seller's basic obligation under the UCC is to transfer and deliver goods to the Buyer that conform to the contact. 2. A Buyer's remedies under the UCC include the right to (i) accept the non-conforming goods; (ii) reject the non-conforming goods; or (iii) accept in part and reject part of the non-conforming goods. 3. If the Seller delivers conforming goods to the contract, then the Buyer may reject them if the Buyer changes his mind....

1, Which of the following is characteristic of a perfect competitive seller's demand curve? A, Price...

1, Which of the following is characteristic of a perfect competitive seller's demand curve? A, Price and marginal revenue are equal at all levels of output. B, marginal revenue is less than price. C, The price elasticity |E| is always 1. D, It is the same as the market demand curve. 2,A perfect competitive firm will always make an economic profit if: A, P = AC. B, P > AVC. C, P = MC. D, P > AC. 3, If...

1)Which of the following is not taken into consideration in computing the seller's amount realized from...

1)Which of the following is not taken into consideration in computing the seller's amount realized from the exchange of property? a. Debt that the buyer assumes b. Commissions paid by the seller c. Legal fees paid by the seller in conjunction with the sale d. All of the above are taken into consideration in computing amount realized e. None of the above are taken into consideration in computing amount realized 2) An apartment building owned by Frank was condemned by...

Question