Consider the demand curve for a product such as movie tickets,which shows how many tickets consumers wish to purchase at each possible price.Alternatively,we could view this demand curve in the following way:
A)for each quantity of movie tickets,the price on the demand curve shows the value that consumers place on that particular movie ticket.
B)for each quantity of movie tickets,the demand curve shows the economic surplus generated by the purchase of the tickets.
C)for each possible price,the demand curve shows the economic surplus generated by the purchase of the tickets.
D)for each quantity of movie tickets,the demand curve shows the extent of market inefficiency and deadweight loss.
E)for each quantity of movie tickets,the demand curve shows the additional cost to the producer of supplying that particular movie ticket.

Question

Quizplus · Accepted Answer

The demand curve for a product such as movie tickets shows the value that consumers place on that particular movie ticket at each possible price. This means that for each quantity of movie tickets, the price on the demand curve represents the maximum amount that consumers are willing to pay for that particular movie ticket. Therefore, choice A is the best answer.

Consider the Demand Curve for a Product Such as Movie