Question

A television costs $100, but a new excise tax law imposes a $5 tax on the sale of the set. if takeshi wants to buy a television, what would have to be his minimum willingness to pay

Answer 1

Between $100 and $105.

Answer 2

A willingness to pay is the maximum amount that a person or individual is willing to hand in to the manufacturers in exchange of the product. In other words, this is the amount that the consumer is willing to sacrifice. The answer to this item must be at least $105.