Table 7-2 This Table Refers to Five Possible Buyers' Willingness to Pay

question 35

Multiple Choice

Table 7-2
This table refers to five possible buyers' willingness to pay for a case of Vanilla Coke.
-Refer to Table 7-2. If the market price is $3.80,

• A)David's consumer surplus is $4.70 and total consumer surplus for the five individuals is $9.50.
• B)Megan's consumer surplus is $1.70 and total consumer surplus for the five individuals is $9.80.
• C)David, Laura, and Megan will be the only buyers of Vanilla Coke.
• D)the demand curve for Vanilla Coke, taking the five individuals into account, is horizontal.

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Definitions:

Petroleum

A naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons, used primarily as fuel and in chemical production.

Oil Shale

A fine-grained sedimentary rock from which liquid hydrocarbons (shale oil) can be produced, serving as a potential source of unconventional oil.

Oil Shale

Sedimentary rock containing organic matter that can be converted into shale oil through heating; a potential but controversial energy resource.

Oil and Gas

Natural hydrocarbon resources extracted from the Earth, used primarily for energy, heating, and in various industrial applications.