The demand curve
(i) is a curve that shows the maximum willingness to pay for a product.
(ii) is a curve that shows the marginal benefit gained from a product.
(iii) is a curve that shows the production cost of a product.
(iv) is a curve that shows the relationship between the price of a product and a consumer's willingness to buy at each price.
A)(i), (ii), (iii) and (iv) are all correct.
B)(i), (ii) and (iv) are correct.
C)(ii) and (iv) are correct.
D)(i) and (ii) are correct.

Question

Quizplus · Accepted Answer

The demand curve shows the relationship between the price of a product and the quantity demanded by consumers at each price. Therefore, (i) and (ii) are partially correct as the demand curve shows the willingness to pay and marginal benefit gained as a result of purchasing the product. (iii) is incorrect as the demand curve does not show the production cost of a product.

The Demand Curve (I) Is a Curve That Shows the Maximum Willingness to Maximum