The value of a unit of a good is given by the height of the:
A) supply curve at equilibrium.
B) supply curve at the quantity level corresponding to the unit.
C) demand curve at equilibrium.
D) demand curve at the quantity level corresponding to the unit.

Question

Quizplus · Accepted Answer

The value of a unit of a good is determined by the highest price that consumers are willing to pay for that unit, which is represented by the demand curve. Therefore, the value of a unit of a good is given by the height of the demand curve at the quantity level corresponding to the unit.

The Value of a Unit of a Good Is Given