Table 7-4
For each of the three potential buyers of apples, the table displays the willingness to pay for Bob, Sasha, and Eric, who are the only three buyers of apples. Assume that only three apples can be supplied per day.

$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text {Willingness to Pay}$
$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text {(Dollars)}$
$\begin{array}{|c|c|c|c|}
\hline& \text { First Apple } & \text { Second Apple } & \text { Third Apple } \
\hline \text { Bob } & 2.00 & 1.50 & 0.75 \
\hline \text { Sasha } & 1.50 & 1.00 & 0.60 \
\hline \text { Eric } & 0.75 & 0.25 & 0.00 \
\hline
\end{array}$

-Refer to Table 7-4. Who experiences the largest loss of consumer surplus when the price of an apple increases from $0.70 to $1.40?
A)Bob
B)Sasha
C)Eric
D)All three individuals experience the same loss of consumer surplus

Question

Table 7-4
For each of the three potential buyers of apples, the table displays the willingness to pay for Bob, Sasha, and Eric, who are the only three buyers of apples. Assume that only three apples can be supplied per day.
​
​
 $\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text {Willingness to Pay}$
$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\quad $$\text {(Dollars)}$
$\begin{array}{|c|c|c|c|} 
\hline& \text { First Apple } & \text { Second Apple } & \text { Third Apple } \
\hline \text { Bob } & 2.00 & 1.50 & 0.75 \
\hline \text { Sasha } & 1.50 & 1.00 & 0.60 \
\hline \text { Eric } & 0.75 & 0.25 & 0.00 \
\hline
\end{array}$

-Refer to Table 7-4. Who experiences the largest loss of consumer surplus when the price of an apple increases from $0.70 to $1.40?
A)Bob
B)Sasha
C)Eric
D)All three individuals experience the same loss of consumer surplus

Quizplus · Accepted Answer

Bob experiences the largest loss of consumer surplus because he is willing to pay the most for the first and second apples, indicating a higher initial consumer surplus compared to Sasha and Eric. When the price increases to $1.40, Bob loses the opportunity to buy the first apple at a price much lower than his willingness to pay ($2.00), resulting in a significant loss of consumer surplus. Sasha and Eric's willingness to pay for the first apple is less than Bob's, so their loss in consumer surplus is smaller.

Table 7-4 for Each of the Three Potential Buyers of Apples

Table 7-4
for Each of the Three Potential Buyers of Apples