Suppose That Irina Is Prepared to Pay a Maximum of $2.40

question 66

Multiple Choice

Suppose that Irina is prepared to pay a maximum of $2.40 for her first glass of cranberry juice,but for each subsequent glass she is only prepared to pay 20 cents less than the previous one.
-Which of the following statements is correct regarding demand and consumer surplus?

• A)The greater the elasticity of demand,the greater will be the consumer surplus.
• B)The greater the elasticity of demand,the smaller will be the consumer surplus.
• C)The greater the number of substitutes for a product,the greater will be the consumer surplus.
• D)The smaller the elasticity of demand,the smaller will be the consumer surplus.

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