A point on the demand curve shows the
A) minimum price that people are willing to pay for another unit of a good.
B) dollars' worth of other goods that people must sacrifice to consume another unit of the good.
C) maximum price that people are willing to pay for another unit of a good.
D) consumer surplus a person gains from consuming a unit of a good.
E) marginal benefit minus the consumer surplus from consuming another unit of a good.

Question

Quizplus · Accepted Answer

A point on the demand curve represents the maximum price that people are willing to pay for another unit of a good. This is because as the price of the good increases, the quantity demanded decreases, and the point on the curve represents the price where the quantity demanded is exactly equal to the quantity supplied. At a higher price, demand would be lower and at a lower price, demand would be higher. Therefore, the point on the demand curve represents the maximum price people are willing to pay for another unit of the good.

A Point on the Demand Curve Shows the