Asked by
Prachanda Adhikari
on Nov 17, 2024
Verified
A maximum amount that people have in mind while bidding in an auction is called
A) a resistance price.
B) equilibrium.
C) consumer surplus.
D) willingness to pay.
Resistance Price
A price level at which an asset meets pressure on its way up due to a concentration of selling interest, often used in technical analysis of financial markets.
Willingness to Pay
The maximum amount an individual or entity is prepared to spend to purchase a good or service or to avoid something undesirable.
- Understand the connection between market price, the willingness of consumers to pay, and the surplus experienced by consumers.
- Investigate the dynamics of auctions and strategies for bidding in the context of consumer surplus and their propensity to pay.
Verified Answer
YX
Learning Objectives
- Understand the connection between market price, the willingness of consumers to pay, and the surplus experienced by consumers.
- Investigate the dynamics of auctions and strategies for bidding in the context of consumer surplus and their propensity to pay.