For each of the three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day. Willingness to Pay (Dollars) First Orange Second Orange Third Orange 2.00 Allison 1.50 0.75 Bob 1,50 1.00 0.60 Charisse 0.75 0.25 0.00 Refer to Table 7-4. Which of the following statements is correct? O a. All three individuals will buy at least one orange only if the price of an orange is less than $0.25. O b.if the price of an orange is s0.60, then consumer surplus is $4.90. C. Neither Bob's consumer surplus nor Charisse's consumer surplus can exceed Allison's consumer surplus, for any price of an orange. O d. Charisse will always have the highest consumer surplus

For each of the three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day. Willingness to Pay (Dollars) First Orange Second Orange Third Orange 2.00 Allison 1.50 0.75 Bob 1,50 1.00 0.60 Charisse 0.75 0.25 0.00 Refer to Table 7-4. Which of the following statements is correct? O a. All three individuals will buy at least one orange only if the price of an orange is less than $0.25. O b.if the price of an orange is s0.60, then consumer surplus is $4.90. C. Neither Bob's consumer surplus nor Charisse's consumer surplus can exceed Allison's consumer surplus, for any price of an orange. O d. Charisse will always have the highest consumer surplus

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter22: Frontiers Of Microeconomics

Section: Chapter Questions

Problem 6PA

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