The Market for Strawberries Is Perfectly Competitive

question 33

Multiple Choice

The market for strawberries is perfectly competitive. Joe and Haley are consuming the same amount of strawberries, but Joe's demand is much more elastic than Haley's. Which statement is true?

• A)Joe's consumer surplus exceeds Haley's.
• B)Haley's consumer surplus equals Joe's.
• C)Haley's consumer surplus exceeds Joe's.
• D)In comparing consumer surpluses, no statement can be made.
• E)Any comparison of consumer surplus depends on the price of strawberries.

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded.

Price Rise

An increase in the cost of goods and services in an economy over a period, often leading to decreased purchasing power.

Demand

The desire of purchasers, consumers, clients, or employers, backed by the ability and willingness to pay for a particular commodity or service.

Consumer Income

The total amount of income earned by consumers, influencing their purchasing power and demand for goods and services in the economy.