Individual demand tells us the
A)minimum amount an individual is willing to pay for an extra unit of a good.
B)maximum quantity of a good an individual is willing to buy at any given price.
C)total benefit a consumer gets from a good, but only when the price is equal to zero.
D)marginal benefit is unrelated to willingness to pay.
E)maximum marginal utility an individual receives from consuming one more unit of a good.

Question

Quizplus · Accepted Answer

Individual demand refers to the quantity of a good that an individual is willing and able to buy at a given price. Therefore, it tells us the maximum quantity of a good an individual is willing to buy at any given price. Option A describes willingness to pay, which is not the same as quantity demanded. Option C is incorrect because total benefit is obtained from all units of the good consumed, not just at a price of zero. Option D is incorrect as marginal benefit is related to willingness to pay. Option E refers to the concept of diminishing marginal utility but is not a complete description of individual demand.

Individual Demand Tells Us the