Question
A consumer's maximum willingness-to-pay, B, reflects the consumer's tastes and his/ her income or wealth constraintsthat is, one consumer may have a higher willingness- to-pay
A consumer's maximum willingness-to-pay, B, reflects the consumer's tastes and his/ her income or wealth constraintsthat is, one consumer may have a higher willingness- to-pay for a good than another consumer because he/she "likes" the good more (e.g., because of its attributes or performance) or because he/she has more disposable income than the other consumer, or because of some combination of both taste and income differences From a company's perspective, does it matter whether differences in B across potential consumers is primarily driven by differences in taste or differences in income
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