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

question 35

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 Alex, Barb, and Carlos are the only three buyers of oranges, and only three oranges can be supplied per day.

-Refer to Table 7-5.If the market price of an orange increases from $0.60 to $1.05,then consumer surplus

• A) increases by $2.90.
• B) decreases by $2.25.
• C) decreases by $2.70.
• D) decreases by $3.85.

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Definitions:

Observable Behaviours

Actions or reactions of an individual that can be directly seen and measured.

Behaviourism

A theoretical orientation based on the premise that scientific psychology should study only observable behavior and investigates how organisms learn new behaviors or modify existing ones, depending on whether events in their environments reward or punish these behaviors.

Unconscious

A part of the mind that hosts thoughts, memories, and desires not present in conscious awareness, influencing behavior and decisions.

Sigmund Freud

An Austrian neurologist and the founder of psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.