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

question 100

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 Allison, Bob, and Charisse are the only three buyers of oranges, and only three oranges can be supplied per day.
-Refer to Table 7-5. Who experiences the largest gain in consumer surplus when the price of an orange decreases from $1.05 to $0.75?

• A)Allison
• B)Bob
• C)Charisse
• D)Allison and Bob experience the same gain in consumer surplus, and Charisse's gain is zero.

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Definitions:

Complete

To finish or conclude an action or process entirely, leaving no part undone.

Working

Engaged in an activity as a means of earning income; employed.

Reward

A payment or compensation offered for the fulfillment of certain requirements or for providing specific services.

Promised

The past tense of promise, indicating that an assurance or commitment had been previously made.