The market demand curve
A) can also be the marginal social benefit curve.
B) can also be the marginal social cost curve.
C) shows the value of a good that consumers must give up to get another unit of a different good.
D) by itself determines equilibrium prices.

Question

Quizplus · Accepted Answer

The market demand curve can also represent the marginal social benefit curve because it reflects the additional benefit that society receives from consuming an additional unit of a good. This is because the demand curve is based on the value that consumers place on each unit of a good, which can be interpreted as the benefit to society of consuming that unit.

The Market Demand Curve