A Consumer's Willingness to Pay

question 76

Multiple Choice

A consumer's willingness to pay:

• A) is the maximum price that the consumer would be willing to pay for a good or service.
• B) is the minimum price that the consumer would be willing to pay for a good or service.
• C) is known as the consumer's reserved minimum bid-price.
• D) must always equal a seller's willingness to sell.

---

Definitions:

Equal Installments

A method of loan repayment where the borrower pays the same amount periodically over the duration of the loan.

Borrowed

Referring to money or items obtained on loan, with the obligation to return or repay according to agreed terms.

Mortgage

A loan used to purchase real estate, where the property itself serves as collateral for the loan.

Interest And Principal

Refers to the two components of a loan payment: the interest (a percentage of the borrowed amount charged by the lender for using their money) and the principal (the original amount of the loan itself).