Exhibit 5-7
-Exhibit 5-7 shows the willingness of Monet and Andrew to pay for latte. If the market price of one cup of latte is $2, which of the following is true?
A)Monet will consume 3 cups of latte, and Andrew will consume 4 cups.
B)Monet will consume 4 cups of latte, and Andrew will consume 3 cups.
C)Both Monet and Andrew will consume 3 cups of latte.
D)Both Monet and Andrew will consume 4 cups of latte.
E)Monet will consume no latte, and Andrew will consume 7 cups.

Question

Exhibit 5-7 
-Exhibit 5-7 shows the willingness of Monet and Andrew to pay for latte. If the market price of one cup of latte is $2, which of the following is true?
A)Monet will consume 3 cups of latte, and Andrew will consume 4 cups. 
B)Monet will consume 4 cups of latte, and Andrew will consume 3 cups. 
C)Both Monet and Andrew will consume 3 cups of latte. 
D)Both Monet and Andrew will consume 4 cups of latte. 
E)Monet will consume no latte, and Andrew will consume 7 cups.

Quizplus · Accepted Answer

Monet is willing to pay $4 for a latte, and Andrew is willing to pay $3. If the market price is $2, both Monet and Andrew will be willing to consume more than one cup of latte. However, Monet is willing to pay more than Andrew, so Monet will consume more cups of latte than Andrew.

Exhibit 5-7 -Exhibit 5-7 Shows the Willingness of Monet and Andrew to and Andrew