Table 4-4

-Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of the champagne falls from $24 to $14,
A) consumer surplus increases from $32 to $53.
B) Curly will buy four bottles; Moe will buy two bottles, and Larry will buy one bottle.
C) consumer surplus will increase from $80 to $95.
D) Larry and Moe will receive more consumer surplus than Curly.

Question

Table 4-4
 
-Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of the champagne falls from $24 to $14,
A) consumer surplus increases from $32 to $53. 
B) Curly will buy four bottles; Moe will buy two bottles, and Larry will buy one bottle. 
C) consumer surplus will increase from $80 to $95. 
D) Larry and Moe will receive more consumer surplus than Curly.

Quizplus · Accepted Answer

When the price falls from $24 to $14, the consumer surplus increases because each consumer pays less than their maximum willingness to pay, thus increasing the total consumer surplus from $32 to $53.

Table 4-4 -Refer to Table 4-4. the Table Above Lists the Highest