3. A demand curve reflects each of the following except the O willingness to pay of all buyers in the market. O value each buyer in the market places on the good. O highest price buyers are willing to pay for each quantity. ability of buyers to obtain the quantity they desire.
4. If a consumer places a value of $15 on a particular good and if the price of the good is $17, then the O consumer has consumer surplus of $2 if he or she buys the good. consumer does not purchase the good. O market is not a competitive market. O price of the good will fall due to market forces.
Answer
3.Demand curve reflects the value/willingness or maximum price
person consumer willing to pay for each quantity whereas ability to
obtain the quantity consumer desire is a reflection of their income
and Consumption possibility Hence, it does not reflect ”
ability of the buyer to obtain the quantity they
desire”
4. If a consumer associate value of $15 and market price is $17
Consumer does not purchase the good since it is
above what they percieve the value to be, Consumer will have
surplus only when price is lower than value they see for the good,
this does not reflect competition level in the market and price is
not determined by single customer and is reflection of market
demand and supply
