Answer to Question #241946 in Macroeconomics for Tommy

Question

every demand curve must eventually hit the quantity axis because with limited incomes, there is always a price so high so high that there is no demand for the good. Do you agree or disagree? why?

Answer 1

Disagree

This is because each demand curve usually hit the axis based on the diminishing marginal utility. When the price is zero, a limit is drawn based on the amount an individual can consume.