Which of the following is true regarding a demand curve?
i.The demand curve is also the marginal benefit curve.
ii.The demand curve shows the dollars' worth of other goods that people are willing to forgo to consume another unit of the good.
iii.The demand curve shows the maximum price that people are willing to pay for another unit of a good.
A) i and ii
B) i and iii
C) ii and iii
D) i, ii, and iii
E) i only

Question

Quizplus · Accepted Answer

The demand curve represents all three statements: it is the marginal benefit curve, showing the additional benefit consumers get from consuming one more unit of a good; it illustrates the maximum price consumers are willing to pay for another unit of the good, which can also be interpreted as the value of other goods consumers are willing to forgo to consume another unit of the good in question.

Which of the Following Is True Regarding a Demand Curve