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.

Analyze the role of practice and perseverance in skill acquisition.

Distinguish between relevant and irrelevant details in relation to a central theme.

Recognize the evolution of objects or practices over time and their impact on contemporary society.

Understand the concepts of explanatory and response variables in different contexts.

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Definitions:

Low-Income

Refers to individuals or families whose earning is below a certain threshold defined by national statistics, often leading to reduced access to goods and services.

Infant Mortality Rate

The number of deaths of infants under one year old per 1,000 live births in a given year.

Labor Force

The total number of people employed and unemployed, actively seeking work in an economy.

Developed Countries

Nations with highly advanced economies, significant industrial activity, and high living standards.