Figure 7-27
-Refer to Figure 7-27.Buyers who value this good less than the equilibrium price are represented by which line segment?
A)AC.
B)CK.
C)BC.
D)CH.

Question

Figure 7-27 
-Refer to Figure 7-27.Buyers who value this good less than the equilibrium price are represented by which line segment?
A)AC. 
B)CK. 
C)BC. 
D)CH.

Quizplus · Accepted Answer

Buyers who value the good less than the equilibrium price are represented by the line segment CK, which is the portion of the demand curve below the equilibrium price P*. This is because buyers who are willing to pay less than P* will not be able to purchase the good in the market at that price, and therefore their demand is not reflected in the quantity demanded at P*.

Figure 7-27 -Refer to Figure 7-27.Buyers Who Value This Good Less Than