Reserve Price

Factors Influencing Willingness to Accept (WTA)

Market for Second-Hand University Textbooks

Supply Curve

Methods for Selling a Privately-Owned Car

An individual is selling a vintage concert poster they own. They have a strong sentimental attachment to it and have decided they would rather keep it than sell it for anything less than $75. A collector initially offers $60, which the owner declines. Later, the collector increases their offer to $90, and the owner agrees to the sale. Based on this scenario, what is the owner's willingness to accept?

Comparing Seller Valuations

Seller's Decision Point

A seller's willingness to accept for a used bicycle is $100. If they successfully sell the bicycle for $120, it demonstrates that their true willingness to accept was $120.

Match each seller's scenario to their correct Willingness to Accept (WTA), which is the minimum price they would agree to sell their item for.

Evaluating Seller Success

The absolute minimum price a seller requires to sell a good or service, below which they would prefer to keep the item, is known as their __________.

A student is selling a used graphing calculator. They have determined that the absolute minimum price they would sell it for is $50. Arrange the following events in the logical order they would occur for a successful transaction to take place from the seller's perspective.

Inferring Seller Valuation

An individual is selling a rare comic book. They have determined that the absolute minimum price they will part with it for is $500. They receive an initial offer of $450, which they immediately decline. A second potential buyer offers exactly $500. After considering the offer, the seller agrees to the sale. A third buyer then contacts the seller and offers $550, but the seller has already committed to the second buyer. Based on this information, what is the seller's willingness to accept?