What does the demand curve tell us about the price that consumers are willing to pay? A demand curve __ A. is a marginal cost curve B. tells us the maximum that someone is willing to pay for an additional unit of a good or service C. tells us that marginal benefit rises as the quantity purchased increases D. shows us that the highest price that someone is willing to pay for an additiona I unit of a good or service falls as the quantity decreases

## Step 1<br />The demand curve is a fundamental concept in economics that illustrates the relationship between the price of a good or service and the quantity of that good or service that consumers are willing to purchase. <br /><br />## Step 2<br />Option A suggests that the demand curve is a marginal cost curve. This is incorrect. A marginal cost curve represents the additional cost of producing one more unit of a good or service, not the price consumers are willing to pay.<br /><br />## Step 3<br />Option B states that the demand curve tells us the maximum that someone is willing to pay for an additional unit of a good or service. This is not accurate. The demand curve shows the total quantity demanded at various prices, not the maximum price an individual is willing to pay.<br /><br />## Step 4<br />Option C suggests that the demand curve tells us that marginal benefit rises as the quantity purchased increases. This is also incorrect. The demand curve typically slopes downward, indicating that as the price decreases, the quantity demanded increases. This implies that the marginal benefit (or value) of each additional unit decreases as one buys more.<br /><br />## Step 5<br />Option D states that the demand curve shows us that the highest price that someone is willing to pay for an additional unit of a good or service falls as the quantity decreases. This is the correct answer. As one moves down the demand curve, the price that consumers are willing to pay for an additional unit decreases.