At all points on a demand curve, the i. consumer's budget has been allocated to maximise total utility.
Ii) quantity is the quantity demanded at each price when total utility is maximised.
Iii) price represents the marginal benefit the consumer gets from an extra unit of a good.
A) i only
B) ii only
C) i and ii
D) i and iii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

All three statements are correct: i) The demand curve reflects the consumer's budget allocation to maximize total utility; ii) The quantity on the demand curve is the quantity demanded at each price when total utility is maximized; iii) The price on the demand curve represents the marginal benefit the consumer receives from an additional unit of the good.

At All Points on a Demand Curve, the I