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:

Warranty Period

The duration during which a manufacturer or seller promises to repair or replace a product if necessary, under certain conditions.

Warranty Period

The duration in which a manufacturer or seller promises to repair or replace defective products or parts at no additional cost.

Normally Distributed

A term describing a dataset that exhibits the properties of a normal distribution, specifically symmetry around the mean, with a bell-shaped curve where data tails off symmetrically at both ends.

Manufacturer

A company or entity that makes goods for sale by processing raw materials and assembling components, often on a large scale.