At all points on a demand curve,the
i.consumer's budget has been allocated to maximize total utility.
ii.quantity is the quantity demanded at each price when total utility is maximized.
iii.price represents the marginal benefit the consumer gets from an extra unit of a good.
A) i only
B) ii only
C) i and ii
D) i and iii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

All three statements accurately describe characteristics of points on a demand curve. Statement i reflects the principle of utility maximization within a budget constraint. Statement ii indicates that the quantity demanded at each price is the one that maximizes total utility. Statement iii correctly identifies price as the marginal benefit of consuming an additional unit, which aligns with the concept of marginal utility in consumer choice theory.

At All Points on a Demand Curve,the