When referring to demand, the extensive margin refers to
A)how much each consumer buys
B)how many consumers are in the market
C)to what extent does elasticity play a role
D)how much is the marginal utility for each consumer

Question

Quizplus · Accepted Answer

The extensive margin of demand refers to the number of consumers who are willing and able to purchase a good at a given price. It is concerned with the size of the market rather than the behavior of individual consumers. Therefore, option B is the best choice. The other options are related to the intensive margin, which deals with the behavior of individual consumers.

When Referring to Demand, the Extensive Margin Refers to