Table 7-4
for Each of the Three Potential Buyers of Apples

question 150

Multiple Choice

Table 7-4
For each of the three potential buyers of apples, the table displays the willingness to pay for Bob, Sasha, and Eric, who are the only three buyers of apples. Assume that only three apples can be supplied per day.
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$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {Willingness to Pay}$
$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\text {(Dollars) }$
$\begin{array}{|c|c|c|c|} \hline& \text { First Apple } & \text { Second Apple } & \text { Third Apple } \\\hline \text { Bob } & 2.00 & 1.50 & 0.75 \\\hline \text { Sasha } & 1.50 & 1.00 & 0.60 \\\hline \text { Eric } & 0.75 & 0.25 & 0.00 \\\hline\end{array}$

-Refer to Table 7-4. Who experiences the largest gain in consumer surplus when the price of an apple decreases from $1.05 to $0.75?

• A)Bob
• B)Sasha
• C)Eric
• D)Bob and Sasha experience the same gain in consumer surplus, and Eric's gain is zero

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Definitions:

Compounded Monthly

Involves the addition of interest to the principal sum of a loan or deposit on a monthly basis.

RRSP

Registered Retirement Savings Plan, a Canadian account for holding savings and investment assets, with tax benefits for retirement savings.

Annuity

A fiscal vehicle offering a steady payout to individuals, commonly employed in retirement strategy.

Payments

The act of transferring money from one party to another, often in exchange for goods, services, or to fulfill a legal obligation.