Which of the following factors would impact a buyer's reservation price for a given good or service? Instructions: In order to receive full credit, you must make a selection for each option. Click the box once to insert a check mark for a correct answer and click twice to empty the box for a wrong answer. The price of a good Social influence The cost of producing the item

Question

Brennan Wood

Business

4 May, 03:56

Which of the following factors would impact a buyer's reservation price for a given good or service? Instructions: In order to receive full credit, you must make a selection for each option. Click the box once to insert a check mark for a correct answer and click twice to empty the box for a wrong answer. The price of a good Social influence The cost of producing the item

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Answers (1)

Know the Answer?

Jaydon Moses · Answer 1

Answer: Social influence

Explanation:

The reservation price is the maximum price that a buyer is willing to pay for a product. For a consumer, the difference in the reservation price and the agreed price that the buyer finally pay for the product is the consumer surplus.

Social influence is a factor that affects ones reservation price. As individuals, social forces influences our demand. The cost of producing the product is a supply-side factor that will affect the supply but will not affect the reservation price. The price of the good also does not affect the reservation price.