(I) The height of the demand curve for a commodity indicates the maximum amount the consumer would be willing to pay for each unit of the good. (II) The height of the supply curve for a commodity indicates the minimum price the seller would accept for each unit of the good.

Question

Quizplus · Accepted Answer

I is true because the height of the demand curve represents the maximum amount that a consumer is willing to pay for each unit of the good. This is because as the price of the good increases, the quantity demanded decreases, and the height of the demand curve represents the quantity consumers are willing to buy at a given price.

II is true because the height of the supply curve represents the minimum price that a seller is willing to accept for each unit of the good. As the price of the good increases, the quantity supplied increases, and the height of the supply curve represents the quantity that suppliers are willing to sell at a given price.

(I) the Height of the Demand Curve for a Commodity