The market for strawberries is perfectly competitive. Joe and Haley are consuming the same amount of strawberries, but Joe's demand is much more elastic than Haley's. Which statement is true?
A)Joe's consumer surplus exceeds Haley's.
B)Haley's consumer surplus equals Joe's.
C)Haley's consumer surplus exceeds Joe's.
D)In comparing consumer surpluses, no statement can be made.
E)Any comparison of consumer surplus depends on the price of strawberries.

Question

Quizplus · Accepted Answer

Joe's demand is more elastic, meaning he is more sensitive to price changes, so he gains less consumer surplus compared to Haley, whose demand is less elastic.

The Market for Strawberries Is Perfectly Competitive