Table 7-3
For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Alex, Barb, and Carlos are the only three buyers of oranges, and only three oranges can be supplied per day.

-Refer to Table 7-3.Who experiences the largest loss of consumer surplus when the price of an orange increases from $0.70 to $1.40?
A)Alex
B)Barb
C)Carlos
D)All three individuals experience the same loss of consumer surplus.

Question

Table 7-3
For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Alex, Barb, and Carlos are the only three buyers of oranges, and only three oranges can be supplied per day.
 
-Refer to Table 7-3.Who experiences the largest loss of consumer surplus when the price of an orange increases from $0.70 to $1.40?
A)Alex 
B)Barb 
C)Carlos 
D)All three individuals experience the same loss of consumer surplus.

Quizplus · Accepted Answer

Alex experiences the largest loss of consumer surplus because he was willing to pay the highest price for an orange, so the increase in price affects him the most.

Table 7-3 For Each of Three Potential Buyers of Oranges, the Table