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

Question 138

Multiple Choice

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 Willingness to Pay\text {Willingness to Pay}
\quad \quad \quad \quad \quad \quad \quad \quad \quad \quad \quad (Dollars) \text {(Dollars) }
 First Apple  Second Apple  Third Apple  Bob 2.001.500.75 Sasha 1.501.000.60 Eric 0.750.250.00\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. Which of the following statements is correct?


A) Neither Sasha's consumer surplus nor Eric's consumer surplus can exceed Bob's consumer surplus, for any price of an orange.
B) All three individuals will buy at least one orange only if the price of an orange is less than $0.25.
C) If the price of an orange is $0.60, then consumer surplus is $4.90.
D) Eric will always have the highest consumer surplus.

Correct Answer:

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