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Digiron [165]
3 years ago
8

True or False: Keeping his maximum willingness to pay for an antique car in mind, Manuel will not buy the antique car because it

would be worth less to him than its market price of $200,000.
Business
1 answer:
harina [27]3 years ago
4 0

Answer:

True

Explanation:

Manuel's willingness to pay versus the actual cost of something is defined as consumer surplus.

Consumer surplus = the maximum price that Manuel is willing to pay for the antique car - actual price of the antique car.

If consumer surplus is negative, then Manuel (or anyone else) will not be willing to purchase the car or any other good or service. Consumers will only purchase a good or service if their consumer surplus is ≥ 0.

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