Which of the following statements is correct?
i.The demand curve shows the maximum price people are willing to pay for a given quantity of the good.
ii.The maximum price a consumer is willing to pay for an additional unit is the marginal benefit of that unit.
iii.Value is what a consumer receives and price is what a consumer pays.
A) i only
B) ii only
C) iii only
D) i and iii
E) i, ii, and iii

Question

Quizplus · Accepted Answer

i. The demand curve indeed shows the maximum price consumers are willing to pay for each quantity of the good, reflecting their valuation of it. ii. The maximum price a consumer is willing to pay for an additional unit (the reservation price) represents the marginal benefit of that unit to the consumer. iii. Value represents the benefit or utility a consumer receives from a product, while price is the monetary cost to the consumer. All statements are correct.

Which of the Following Statements Is Correct