Suppose a downward-sloping demand curve intersects the horizontal axis at a point where quantity demanded equals 1250 units.What is the "value" that consumers place on the 1250th unit of this good?
A)a negative value
B)a positive value
C)$0
D)$1250
E)it depends on the position of the supply curve

Question

Quizplus · Accepted Answer

The value consumers place on the 1250th unit is $0 because the demand curve intersects the horizontal axis at this point, indicating that consumers are not willing to pay anything for the 1250th unit.

Suppose a Downward-Sloping Demand Curve Intersects the Horizontal Axis at a Point