The figure below shows the supply and demand curves for oranges in Smallville. The marginal buyer values the tenth pound of oranges at ______.
A)$0
B)$4
C)$8
D)$12

Question

The figure below shows the supply and demand curves for oranges in Smallville.  The marginal buyer values the tenth pound of oranges at ______.
A)$0 
B)$4 
C)$8 
D)$12

Quizplus · Accepted Answer

The marginal buyer's value is equal to the price. At the quantity where the 10th pound is sold, the price is $12. Therefore, the marginal buyer values the 10th pound of oranges at $12.

The Figure Below Shows the Supply and Demand Curves for Oranges