Each point on a demand curve shows
A)the willingness of consumers to purchase a product at different prices.
B)the consumer surplus received from purchasing a given quantity of a product.
C)the economic surplus received from purchasing a given quantity of a product.
D)the legally determined maximum price that sellers may charge for a given quantity of a product.

Question

Quizplus · Accepted Answer

Each point on a demand curve represents a different price and the quantity of a product that consumers are willing to purchase at that price. Therefore, the demand curve illustrates the relationship between price and quantity demanded, reflecting the willingness of consumers to buy a product at different prices. The consumer surplus and economic surplus can be derived from the demand curve and are not represented by each individual point. The legally determined maximum price would be represented by a price ceiling on the market, which is not necessarily shown on the demand curve.

Each Point on a Demand Curve Shows