Exhibit 6.3

-Refer to Exhibit 6.3,which shows the demand curve for neckties.At point a,the monetary value of the total utility received by a consumer is _____
A)$5.
B)$9.
C)$20.
D)$26.
E)$45.

Question

Exhibit 6.3
 
-Refer to Exhibit 6.3,which shows the demand curve for neckties.At point a,the monetary value of the total utility received by a consumer is _____
A)$5. 
B)$9. 
C)$20. 
D)$26. 
E)$45.

Quizplus · Accepted Answer

At point a, the quantity demanded is 4 ties and the price per tie is $6.50, making the total monetary value of the ties demanded $26. The point where the demand curve intersects with the price axis (at a quantity demanded of zero) is not relevant to the question because it does not represent a point where a consumer actually purchases any ties. Therefore, choices A, B, C, and E are incorrect.

Exhibit 6.3 -Refer to Exhibit 6.3,which Shows the Demand Curve for Neckties.At