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
D
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In an attempt to reduce poaching of elephant tusks for ivory, officials in Kenya burned illegally gathered ivory. Economists tend to point out that
A. poaching can be reduced with price supports for ivory. B. the supply of ivory has fallen, leading to an increase in price and reward for poaching. C. burning ivory decreases demand, leading to lower prices and reward for poaching. D. the demand for ivory is higher, leading to an increase in price and reward for poaching. E. burning ivory raises demand, and controlled prices will lead to even greater poaching.
In contrast to the CAPM, the APT assumes that there can be several sources of ________ that cannot be eliminated through diversification
A) nonsystematic risk B) systematic risk C) credit risk D) arbitrary risk
Economists sometimes call zero economic profit a ______ rate of return.
a. natural b. negative c. normal d. neutral
When consumers pay only a fraction of the true cost of medical services, their demand increases. The marginal cost of producing these extra services
A) is greater than the marginal benefit consumers receive from them. B) is less than the marginal benefit consumers receive from them. C) is equal to the marginal benefit consumers receive from them. D) is zero due to the insurance payments.