If you are a buyer with a buyer value of $6.50, would you be willing to buy a book for $6.25?
1 answer:
Answer: Yes, we will be willing to buy it for $6.25.
Explanation: Willingness to pay for a good measures the maximum amount the consumer is ready to pay for a good or service. If the price for a good is less than the willingness to pay then the consumer will buy the good. If the price is more than the willingness to pay then they will not buy the goo.
In this case, the buyer's willingness to pay is $6.50, so if price of a book is $6.25 the buyer will buy it and get a surplus of,
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