Sarah and David Both Have Linear Demand Curves for Lemonade

question 29

Multiple Choice

Sarah and David both have linear demand curves for lemonade.Sarah's demand is more elastic than David's.At the current price of $0.50 per glass,they both choose to buy 5 glasses.A change in the price of lemonade to $0.75 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.

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Definitions:

Peer Relations

The interactions and relationships that occur between individuals of similar age, often influencing social development and behavior.

Maturity Level

The state of being fully developed in the physical, emotional, or psychological sense.

Ambiguous Behavior

Actions or reactions that can be interpreted in multiple ways due to their lack of clarity or certainty.

Aggressive Children

Children who exhibit behaviors that are hostile, forceful, or assertive, often resulting in negative social interactions.