Which of the Following Is True

question 325

Multiple Choice

Which of the following is true?

• A) The height of the demand curve for a product at a given quantity represents the marginal value derived by the consumption of that unit.
• B) The height of the demand curve for a product at a given quantity reflects the total value consumers derive from all units of the good consumed.
• C) The total area above the demand curve for a product is equal to consumer surplus.
• D) At every quantity, the height of the demand curve for a product represents the cost of producing that unit.

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Definitions:

Consideration

The benefit, interest, right, or profit involved in an agreement or contract, on which it is based.

Statute of Frauds

A legal concept requiring certain types of agreements to be executed in writing and signed by the parties involved to be enforceable.

Collateral Promises

Agreements that are secondary to a primary transaction or promise, often requiring the backup of an asset as security.

One-Year Rule

A legal provision in contract law stating that contracts which cannot be performed within one year must be in writing to be enforceable.