-The figure above shows Lauren's demand curve for Barbie dolls and the market price for Barbie dolls.In order for Lauren to avoid paying more for dolls than they are worth to her,she must not purchase any more than
A) 0 dolls.
B) 1 doll.
C) 3 dolls.
D) 5 dolls.
E) 4 dolls.

Question

-The figure above shows Lauren's demand curve for Barbie dolls and the market price for Barbie dolls.In order for Lauren to avoid paying more for dolls than they are worth to her,she must not purchase any more than
A) 0 dolls. 
B) 1 doll. 
C) 3 dolls. 
D) 5 dolls. 
E) 4 dolls.

Quizplus · Accepted Answer

Lauren's demand curve indicates the maximum price she is willing to pay for each additional Barbie doll. To avoid paying more than they are worth to her, she should only buy dolls up to the point where her demand curve is above the market price. If the market price intersects her demand curve at 3 dolls, buying more than 3 dolls would mean paying more than she values them, so she should not purchase more than 3 dolls.

-The Figure Above Shows Lauren's Demand Curve for Barbie Dolls