A point on the demand curve shows the
A) price and the corresponding quantity demanded.
B) marginal benefit from that unit.
C) marginal cost to the seller of producing the unit.
D) Both answers A and B are correct.
E) Both answers A and C are correct.

Question

Quizplus · Accepted Answer

A point on the demand curve represents both the price and the corresponding quantity demanded (A) and the marginal benefit from that unit (B). The demand curve reflects consumers' willingness to pay, which is synonymous with the marginal benefit they derive from consuming an additional unit of the good.

A Point on the Demand Curve Shows the