The actual and potential buyers in a market share which of the following characteristics?

• A. They have a willingness to pay for the good or service.
• B. They receive the same consumer surplus regardless of price.
• C. They are required to buy the good by law.
• D. They always purchase the good at any price.

Answer: (A)

Verified step by step guidance

1. Understand the concept of 'actual and potential buyers' in a market: these are individuals who might purchase a good or service, depending on their preferences and the price.
2. Recall that willingness to pay (WTP) is the maximum amount a buyer is ready to pay for a good or service, reflecting their valuation of it.
3. Recognize that actual and potential buyers share the characteristic of having a positive willingness to pay, meaning they value the good enough to consider purchasing it if the price is right.
4. Note that consumer surplus varies with price and individual preferences, so buyers do not receive the same consumer surplus regardless of price.
5. Understand that buyers are not legally required to purchase the good, nor do they always buy it at any price; their decision depends on their willingness to pay relative to the market price.