Table 7-5 For Each of Three Potential Buyers of Oranges, the Table

question 7

Multiple Choice

Table 7-5
For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Alex, Barb, and Carlos are the only three buyers of oranges, and only three oranges can be supplied per day.

-Refer to Table 7-5.If the market price of an orange increases from $0.70 to $1.40,then consumer surplus

• A) increases by $2.50.
• B) decreases by $0.80.
• C) decreases by $2.60.
• D) decreases by $3.40.

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Definitions:

Obiter Dictum

A remark or observation made by a judge in a legal decision that is not essential to the ruling and therefore not legally binding.

Nonobstante Veredicto

A legal judgment that overturns the verdict of a jury, also known as "judgment notwithstanding the verdict."

Substantial Evidence Test

A standard used in legal settings to determine if the evidence in support of a conclusion is adequate and meaningful.

Arbitrary and Capricious Test

A standard of review used by courts to assess the decision-making process of an administrative agency, ensuring decisions were made logically and not randomly.