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

question 114

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. Which of the following statements is correct?

• A)Neither Sasha's consumer surplus nor Eric's consumer surplus can exceed Bob'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)Eric will always have the highest consumer surplus.

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Definitions:

Legatee

One designated in a will to receive a legacy (a gift of personal property).

General Bequest

A testamentary gift of a particular amount of money or a specific percentage of the estate, not tied to any particular asset.

Testator

A person who has made a will or given a legacy.

Private Ownership

The legal right held by individuals or entities to own property or businesses, allowing for control and use exclusive of government or public intervention.