Every buyer and seller has his own capacity of buying and selling, respectively. Consumers enjoy goods and services after paying a price for them. Sellers need to earn profits as remuneration for their entrepreneurship. However, every consumer has his own purchasing capacity, above which, he will not be willing to purchase that product. Similarly, the seller has his own costs, and a certain limit below which he will not be willing to sell his product. Thus, when there is a consensus between the seller and the buyer, and they agree to a price, the sale is complete. The seller will be willing to sell at a price above his reservation price, and the buyer will be willing to buy at a price below his reservation price. The difference between them is their surplus. According to different buying potentials, consumers will have different consumer surpluses. In first degree price discrimination, the seller attempts at gaining information of the reservation price of various customers. Thus, based on their reservation prices, the seller will charge different prices, taking maximum benefits from all the customers. Every customer has a different buying potential. The seller takes the maximum advantage of it, by collecting information from his client/customer. In marketing, this is an effective technique to target those customers that have higher reservation prices. Calculation of a reservation price depends on many factors. Each individual has his own situation and background to consider. There cannot be any fixed parameter or a formula to calculate the reservation price of every individual. Every individual, as a buyer, analyzes his own purchasing potential, considering his income after provisioning fixed costs. Similarly, every seller should at least sell at a price so that he can recover his cost of production. Thus, he determines his price after calculating his cost of production and the profit margin that he expects. 'Positional bargaining' is a terminology used in negotiations. In this, the seller and buyer both stick to their 'positions', citing their own quotes. Eventually, they both compromise and come to a concluding price. The sale is complete at this price. Typically, we might have all bargained with a street vendor. Once the sale price is not fixed, we start negotiating, and after negotiations, we come to a point that will be beneficial for both parties. An economy will have a large number of potential buyers and sellers. The demand curve of the buyers will be determined as per their reservation prices. Accordingly, the supply and demand forces will decide the final price of the product, making it a win-win situation for both, buyer and seller.