Question

You are negotiating a leasing agreement on some office equipment with Robin, To salesperson for the supplier.
Which of the following could be your Reservation price?

• A. Accept the deal only if Robin meets or is lower than the highest monthly fee you willing to pay
• B. Meet with another office equipment supplier to see what their leasing arrangements cost
• C. Buy used office equipment instead of leasing new equipment
• D. None of these

Answer 1

The correct option is A Accept the deal only if Robin meets or is lower than the highest monthly fee you willing to pay

The reservation price is the least favourable rate at which one will accept the terms of a negotiated agreement. Hence, the deal can only be accepted if Robin meets or the price is lower than the highest fee I am willing to pay.