Reference: Ref 7-1 (Figure: Demand Curve) Refer to the figure. Which point on the graph represents the value of the good in its next highest valued use?
A) Point A
B) Point B
C) Point C
D) the origin

Question

Reference: Ref 7-1 (Figure: Demand Curve) Refer to the figure. Which point on the graph represents the value of the good in its next highest valued use?
A) Point A 
B) Point B 
C) Point C 
D) the origin

Quizplus · Accepted Answer

Point B represents the value of the good in its next highest valued use because it is the highest price someone is willing to pay for the good before the quantity demanded decreases. This means that there is another use for the good that is valued slightly less than the current use, where the price is lower and demand higher.

Reference: Ref 7-1 (Figure: Demand Curve) Refer to the Figure