Question

In: Economics

The buyer's reservation price for a particular good or service is the:


The buyer's reservation price for a particular good or service is the: 

Multiple Choice 

  • price the buyer must pay to ensure he or she gets it. 

  • smallest price the buyer would be willing to pay for it

  • same as the market price. 

  • largest price the buyer would be willing to pay for it.

Solutions

Expert Solution

Answer is largest price the buyer would be willing to pay for it.

Buyers reservation price can be defined as, in order to buy a particular commodity the largest or maximum price or value that a buyer is willing to pay. In other words, it the highest price that a consumer is willing to pay to purchase a commodity or good.

Rahul Sunny answered 2 years ago
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