Author Question: Willingness to pay measures A) the maximum price that a buyer is willing to pay for a good or ... (Read 21 times)

futuristic · **on:** Jun 29, 2018

Willingness to pay measures

A) the maximum price that a buyer is willing to pay for a good or service.
B) the amount a seller actually receives for a good minus the minimum amount the seller is willing to accept for the good.
C) the maximum price a buyer is willing to pay minus the minimum price a seller is willing to accept.
D) the maximum price a buyer is willing to pay for a product minus the amount the buyer actually pays for it.

Question 2

On what economic principle is the concept of utilitarian justice developed? Explain.

What will be an ideal response?

ally · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

A

Answer to Question 2

The concept of utilitarian justice is based on the idea of diminishing marginal utility of income. This implies that transferring income from the wealthy to the poor will increase total utility.