Each price-quantity combination on a consumer's demand curve shows the utility-maximizing quantity at the given price.

Question

Quizplus · Accepted Answer

This statement is true. A consumer's demand curve shows the various quantities of a good or service that the consumer is willing and able to purchase at different prices. Each point on the demand curve represents the utility-maximizing quantity that the consumer would choose to buy at that particular price.

Each Price-Quantity Combination on a Consumer's Demand Curve Shows the Utility-Maximizing