Consider a market where the demand curve is downward sloping and the supply curve is upward sloping (so they are neither vertical nor horizontal).If the consumers' willingness to pay for the hundredth unit is $9.00 and the seller's willingness to accept for the hundredth unit $9.00,then the ________.

Question

Quizplus · Accepted Answer

If the consumers' willingness to pay for the hundredth unit is equal to the seller's willingness to accept for the hundredth unit, it means that they both agree on the price of $9.00 for that unit. However, since the demand and supply curves are not vertical or horizontal, it implies that the equilibrium quantity will not be exactly 100 units. Therefore, neither A nor B is necessarily true. As for C, it is not relevant to the given information. The only logical conclusion is that the willingness to pay exceeds the willingness to accept for the ninety-ninth unit, which results in a price of $9.00 and further transactions will not take place beyond this point.

Consider a Market Where the Demand Curve Is Downward Sloping