Topics
Willingness to pay
Willingness to pay (WTP) is a measure of how much an individual is willing to pay for a good or service, or for a change in the quality or quantity of a good or service. WTP is an important concept in economics and is used to determine the value that individuals place on a particular good or service. It is often used in policy analysis and cost-benefit analysis to evaluate the benefits of a particular program or policy.
See also
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Key Diagrams - Maximum Prices and Consumer Welfare
Topic Videos
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Maximum prices - Why rent control isn’t working in Sweden
27th August 2021