Along a consumer's demand curve for a good,the _____
A)price of the good reflects the producer's costs.
B)price reflects the dollar value of the total utility derived from the good.
C)price reflects the dollar value of the marginal utility of each additional unit of the good.
D)quantity demanded reflects the dollar value of the income earned.
E)quantity demanded reflects the dollar value of a substitute.

Question

Quizplus · Accepted Answer

Along a consumer's demand curve for a good, the price reflects the dollar value of the marginal utility of each additional unit of the good. This means that as the quantity demanded increases, the consumer is willing to pay less for each additional unit of the good because the marginal utility of each additional unit decreases. Therefore, the price of the good decreases along the demand curve.

Along a Consumer's Demand Curve for a Good,the _____