Questions: Value and price can be compared by noting that A. they are the same thing. B. price is what we must pay and value is what we are willing to pay. C. value is always greater than price. D. value is what the seller receives when we buy a good and price is what we must pay when we buy a good. E. value is what we must pay while price is what we are willing to pay.

The answer is B: price is what we must pay and value is what we are willing to pay.

Explanation for each option:

A. They are the same thing.

• This is incorrect. Price and value are related but distinct concepts. Price is the amount of money required to purchase a good or service, while value is the perceived worth or benefit that the consumer expects to receive from the good or service.

B. Price is what we must pay and value is what we are willing to pay.

• This is correct. Price is the monetary cost set by the seller, whereas value is subjective and varies from person to person based on their personal assessment of the benefits they will receive from the product or service.

C. Value is always greater than price.

• This is incorrect. While consumers may perceive the value to be greater than the price in order to justify a purchase, this is not always the case. Sometimes, the perceived value may be less than or equal to the price, depending on individual preferences and circumstances.

D. Value is what the seller receives when we buy a good and price is what we must pay when we buy a good.

• This is incorrect. The seller receives the price, which is the monetary amount paid by the buyer. Value, on the other hand, is the perceived benefit or worth to the buyer, not what the seller receives.

E. Value is what we must pay while price is what we are willing to pay.

• This is incorrect. This option reverses the definitions of price and value. Price is the amount we must pay, while value is the perceived worth or benefit that influences what we are willing to pay.