Along a consumer's demand curve, price reflects
A)the costs of production
B)the dollar value of the total utility from the good
C)the dollar value of the marginal utility of each additional unit of the good
D)the maximum quantity that could be purchased, given income
E)non-rational decision making

Question

Quizplus · Accepted Answer

Along a consumer's demand curve, price reflects the dollar value of the marginal utility of each additional unit of the good. This means that as the price of a good increases, the marginal utility of each additional unit decreases and consumers are willing to purchase fewer units of the good. This relationship is represented by the downward-sloping demand curve. Therefore, the correct answer is C.

Along a Consumer's Demand Curve, Price Reflects