Asked by Shakia Balmer on Jul 17, 2024
Verified
The willingness to pay is the maximum amount that a buyer will pay for a good and measures how much the buyer values the good.
Willingness To Pay
The maximum amount an individual is prepared to spend on a good or service, which reflects the value they place on it.
- Learn about the notions of willingness to pay, actual disbursement, and surplus calculation.
Verified Answer
DO
Dominique OglesbyJul 21, 2024
Final Answer :
True
Explanation :
Willingness to pay represents the maximum amount a consumer is willing to spend on a product or service, indicating the value they place on it.
Learning Objectives
- Learn about the notions of willingness to pay, actual disbursement, and surplus calculation.