Figure 7-8

-Refer to Figure 7-8.Buyers who value this good less than price are represented by which line segment?

Question

Figure 7-8
 
-Refer to Figure 7-8.Buyers who value this good less than price are represented by which line segment?

Quizplus · Accepted Answer

Buyers who value the good less than the price will be represented by the segment CE. This is because at point C, the price of the good is equal to the value of the good for those buyers who are willing to purchase it, and those who value it less than that would not buy the good, hence represented by the segment CE below point C.

Figure 7-8 -Refer to Figure 7-8.Buyers Who Value This Good Less Than