At any given quantity, the willingness to pay in the market for gasoline is reflected in the
A)height of the demand curve at that quantity.
B)height of the supply curve at that quantity.
C)value to the producer of the last unit of gasoline sold.
D)total quantity of gasoline exchanged in the market.

Question

Quizplus · Accepted Answer

The willingness to pay in the market for gasoline is reflected in the height of the demand curve at that quantity. This is because the demand curve shows the relationship between the quantity of gasoline that consumers are willing to buy at different prices. The higher the price, the lower the quantity demanded, reflecting a lower willingness to pay, and vice versa. Therefore, the height of the demand curve reflects the willingness to pay for each quantity of gasoline.

At Any Given Quantity, the Willingness to Pay in the Market