Assume That There Are Four Consumers A, B, C, and D

question 113

Multiple Choice

Assume that there are four consumers A, B, C, and D, and the prices that each of them is willing to pay for a glass of lemonade is, respectively, $2.50, $2.25, $2.00, and $1.75. If the actual price of lemonade is $1.50 per glass, then consumer surplus in this market will be

• A)$3.25.
• B)$1.50.
• C)$4.50.
• D)$1.00.
• E)$2.50.

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Definitions:

Generates Revenues

The process by which businesses engage in activities that result in the inflow of cash or other assets from delivering goods or services.