The Difference Between the Maximum a Person Is Willing to Pay

question 66

Multiple Choice

The difference between the maximum a person is willing to pay and current market price is known as

• A) consumer surplus.
• B) producer surplus.
• C) market surplus.
• D) nonprice surplus.

---

Definitions:

Perceived Inequity

The feeling or perception that one's rewards or outcomes are not fair in comparison to others' rewards or outcomes, leading to feelings of injustice.

Quantity

A measurable amount or the total number of units of a product, material, or substance.

Quality Of Work

The degree to which a task or project is executed with excellence, precision, and effectiveness, meeting or exceeding standards.

Expectancy Theory

A motivational theory that suggests an individual's motivation is an outcome of how much an individual wants a reward (Valence), the assessment that the likelihood that the effort will lead to expected performance (Expectancy) and the belief that the performance will lead to a reward (Instrumentality).