BUSINESS ADMINISTRATION
BUSINESS ECONOMICS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Need
|
|
|
Desire
|
|
|
Demand
|
|
|
Show off
|
Detailed explanation-1: -Generally speaking, the more demand there is for something, the more people will be willing to pay for it. This means that tracking the willingness to pay for your product over time also serves as a sort of proxy for tracking the market demand for that product.
Detailed explanation-2: -Demand is also based on ability to pay. If you cannot pay for it, you have no effective demand. This concept of a consumer’s willingness to pay (WTP) serves as a starting point for the demand curve. A consumer’s Willingness to Pay is equal to that consumer’s Marginal Benefit (MB).
Detailed explanation-3: -What Is Willingness to Pay? Willingness to pay, sometimes abbreviated as WTP, is the maximum price a customer is willing to pay for a product or service. It’s typically represented by a dollar figure or, in some cases, a price range.
Detailed explanation-4: -According to the constructed preference view, consumer willingness to pay is a context-sensitive construct; that is, a consumer’s WTP for a product depends on the concrete decision context.