• about your reservation price for a particular good or service.
• Be specific about how you know what your reservation price is.
• What price is too high for you to purchase the good or service?
• Maybe you are only willing to purchase the good when it is on sale.

Example:My reservation price for an X-Box or Playstation is $75. At this point in my life I do not have time for video games. It has probably been 10 years since I last played a video game. I do however watch movies and could use the gaming console as a DVD/Blu-Ray player. I would likely pay more than $50 because the last DVD player I bought for $50 did not last that long before it broke. I would not be willing to pay $100 for a DVD player as I already pay for Netflix and Hulu and I can stream a lot of movies using those services. The most I would be willing to for a decent DVD/Blu-Ray player is $75. Therefore, I would not be willing to pay more than $75 for a gaming console since that is all I would use it for. Now in a few years when my son is old enough to play video games, my reservation price may increase as I'm sure I will want to play games with him.

Alternative Example:My reservation price for a box of fig newtons is $2.99. Whenever I go to the store for I walk down the cookie aisle and look at the fig newtons. Usually they are $4.99 and I never buy them at that price. Sometimes, they go on sale for $3.99 and I still will not buy them at that price. If they are on sale for 2 for $ 7 ($3.50 a box) I am not interested. However, every once in a while, they go on sale for $2.99. Every time I see them on sale for this price, I will buy a box. Therefore, I know my reservation price for a box of fig newtons is $2.99.