Final answer:
Along the demand curve, the price reflects a consumer's marginal valuation of the good, representing the highest price they are willing to pay for it, which can lead to consumer surplus when the market price is lower.
Step-by-step explanation:
Along the demand curve for a good, the price reflects a consumer's marginal valuation of the good. For instance, if point J on a demand curve indicates that at a price of $90, 20 million tablets would be sold, it shows the highest price at which those 20 million tablets are demanded.
Those consumers who value the tablet at $90 but pay the equilibrium price of $80 experience a benefit beyond what they have to pay, also known as the consumer surplus. This surplus is represented by the area labeled F, which is the area above the market price and below the demand curve. The demand curve, in essence, tracks consumers' willingness to pay for different quantities of a good or service.