Exhibit 5-5
-Refer to Exhibit 5-5. The maximum amount that a consumer is willing to pay for the tenth unit of the good is
A)$0.
B)$2.5.
C)$5.0.
D)$7.5.
E)impossible to determine given the available information.

Question

Exhibit 5-5 
-Refer to Exhibit 5-5. The maximum amount that a consumer is willing to pay for the tenth unit of the good is
A)$0. 
B)$2.5. 
C)$5.0. 
D)$7.5. 
E)impossible to determine given the available information.

Quizplus · Accepted Answer

The maximum amount a consumer is willing to pay for a good is equal to their willingness to pay (WTP). In this exhibit, the consumer's WTP for the tenth unit is $5.0, as shown by the point where the demand curve intersects the y-axis (which represents price) at a quantity of 10. Therefore, the answer is (C) $5.0.

Exhibit 5-5 -Refer to Exhibit 5-5. the Maximum Amount That a Consumer