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

question 130

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 Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day.
-Refer to Table 7-5. Which of the following statements is correct?

• A)Neither Bob's consumer surplus nor Charisse's consumer surplus can exceed Allison's consumer surplus, for any price of an orange.
• B)All three individuals will buy at least one orange only if the price of an orange is less than $0.25.
• C)If the price of an orange is $0.60, then consumer surplus is $4.90.
• D)All of the above are correct.

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Definitions:

Forgery

The act of fraudulently making, altering, or falsifying a document or other object with the intent to deceive or defraud.

Real Defense

Legal defenses that can be used to invalidate a claim in a contract or to nullify the contract itself.

Holder In Due Course

A party that acquires a negotiable instrument in good faith and for value, and is thus protected from many defenses that could be raised against the original payee.

Consumer Credit Contract

A legal agreement between a borrower and a lender where the lender provides the borrower with credit for personal, family, or household purposes.