Use the following to answer questions:
Figure: Demand Curve
-(Figure: Demand Curve) Refer to the figure. Which point on the graph represents the value of the good in its next highest valued use?
A) Point A
B) Point B
C) Point C
D) the origin

Question

Use the following to answer questions:
Figure: Demand Curve 
-(Figure: Demand Curve) Refer to the figure. Which point on the graph represents the value of the good in its next highest valued use?
A) Point A 
B) Point B 
C) Point C 
D) the origin

Quizplus · Accepted Answer

Point B represents the value of the good in its next highest valued use because it is where the demand curve intersects with the supply curve, which represents the opportunity cost of using the good for its next best use. At point B, the price is higher than at point A or C, indicating that consumers are willing to pay more for the good because it is being used for a more valuable purpose.

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