-Refer to Figure 6

question 79

Multiple Choice

-Refer to Figure 6.1.If the price of a donut is $1.25,consumer surplus is:

• A)$1.75.
• B)$1.25.
• C)$ .75.
• D)$ .50.

---

Definitions:

Price Elasticity

The responsiveness of the quantity demanded of a good or service to a change in its price.

Demand

The volume of goods or services that consumers can and want to buy across a range of prices within a certain period.

Price Elasticity

A metric indicating the responsiveness of the quantity of a good demanded to its price change, presented in percentage terms.

Demand

In economics, the desire and ability of consumers to purchase goods and services at given prices.