The height of the market demand curve
A)at any quantity shows the value - to someone - of the last unit of the good consumed
B)shows the market value of a good or service
C)increases as more of a good or service is consumed
D)shows the cost of producing each unit of a good or service
E)measures the side payment necessary to achieve economic efficiency

Question

Quizplus · Accepted Answer

The height of the market demand curve at any quantity shows the value - to someone - of the last unit of the good consumed. This is because the demand curve represents the maximum price consumers are willing to pay for each unit of the good, and the height of the curve at a given quantity represents the price consumers are willing to pay for the last unit consumed at that quantity.

The Height of the Market Demand Curve