Dare I say it? This concept is one of my favorite and one of the most applicable. Somehow it works its way into conversation long after this course is over.
Say I really like guitars, and I want to buy a particular one. How much am I willing to pay for it?
Well, gee. In this course, the amount I’m willing to pay is called my Willingness To Pay (WTP).
What if I’m selling something, and I want some amount of money? The bare minimum amount of money I’ll take for something I’m selling… we’ll call this our Willingness To Sell (WTS).
Notice that WTP and WTS are NOT price… often, a buyer’s WTP is higher than a seller’s WTS, so surplus is created, which is a major part of our next topic of…
Friday, February 20, 2009
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