Which of the following statements is true of the concept of willingness to pay?
A) The willingness to pay is the lowest price that a buyer is willing to pay for an extra unit of a commodity.
B) The willingness to pay for a commodity increases exponentially as the consumption of the commodity increases.
C) The willingness to pay for a commodity increases linearly as the consumption of the commodity increases.
D) If a consumer is consuming 10 units of a commodity and she is ready to pay $2 for the eleventh unit, her willingness to pay for the eleventh unit is $2.
Correct Answer:
Verified
Q33: The demand curve for most goods is
Q34: The quantity demanded of a good is
Q35: Which of the following examples best describes
Q36: Jenny likes chocolates.One day,a friend offers her
Q37: The concept of diminishing marginal benefit states
Q39: The Law of Demand states that _.
A)
Q40: Which of the following best describes the
Q41: A change in the quantity demanded of
Q42: The following table shows the demand schedules
Q43: The figure below shows Sue's and Carlos'
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents