Sarah and David Both Have Linear Demand Curves for Lemonade

question 62

Multiple Choice

Sarah and David both have linear demand curves for lemonade.Sarah's demand curve for lemonade intersects David's demand curve at a price of 50 cents per glass.Sarah's demand curve is more inelastic than David's.A change in the price of lemonade from 50 cents to 25 cents per glass will

• A) decrease Sarah's consumer surplus more than David's.
• B) decrease David's consumer surplus more than Sarah's.
• C) increase Sarah's consumer surplus more than David's.
• D) increase David's consumer surplus more than Sarah's.

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Definitions:

Stressed

A physical or psychological state resulting from circumstances that feel challenging or threatening.

Experiment

A method of research in the sciences or social sciences in which variables are manipulated to observe the effect on some behavior or mental process.

Stress

The body’s response to any demand or challenge, which can be physical, mental, or emotional, and influences the state of both mental and physical health.

Eating Habits

Patterns or behaviors surrounding how and what individuals consume, often influenced by cultural, familial, and personal factors.