Table: Maximum Willingness to Pay The Table Shows Four Individuals' Maximum Willingness to Pay for
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question 128

Multiple Choice

Table: Maximum Willingness to Pay $$\begin{array} { l c } \hline \text { Name } & \begin{array} { c } \text { Willingness to pay } \\\text { for } 1 \text { lb of bananas }\end{array} \\\hline \text { Jill } & \$ 2.00 \\\text { Joe } & 1.25 \\\text { Jane } & 0.75 \\\text { James } & 0.25 \\\hline\end{array}$$ The table shows four individuals' maximum willingness to pay for one pound of bananas. If the market price of bananas is $0.50/lb, what is the total consumer surplus in the market?

• A) $4.00
• B) $2.50
• C) $2.75
• D) $4.25

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Definitions:

Commercial Banks

Financial institutions that accept deposits, offer checking account services, and make loans to individuals and businesses.

Insurance Companies

Insurance companies are financial institutions that provide coverage by pooling risks and compensating covered losses in areas such as life, health, and property.

Investment Companies

Firms that pool funds from investors to collectively invest in stocks, bonds, and other securities, offering diversification and professional management.

Takeovers

The acquisition of one company by another, where the acquiring company obtains a controlling interest in the target company.