At Prices Above a Consumer's Reservation Price

question 18

Multiple Choice

At prices above a consumer's reservation price:

• A) the opportunity cost is less than the benefit from having the good.
• B) the opportunity cost is greater than the benefit from having the good.
• C) the buyer will purchase the good.
• D) the willingness to pay is greater than the price.

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Definitions:

Credit

A bookkeeping entry that increases the value of liabilities or equity accounts, or decreases the value of an asset or expense account.

Journal

A detailed record where all financial transactions of a business are initially recorded.

Chronological Record

A record of events or transactions organized in the order they occurred over time.

Transactions

The exchange or transfer of goods, services, or funds between two or more parties.