Table 7-5
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 7-5.If the market price of an orange increases from $0.70 to $1.40,total consumer surplus

Question

Table 7-5
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 7-5.If the market price of an orange increases from $0.70 to $1.40,total consumer surplus

Quizplus · Accepted Answer

When the market price of an orange increases from $0.70 to $1.40, only Alex will be willing to buy the first orange at $1.40, which means Barb and Carlos will not buy any oranges. Therefore, total consumer surplus decreases by $2.50, which is equal to Barb and Carlos's surplus at the original price of $0.70.

Table 7-5 For Each of Three Potential Buyers of Oranges,the Table Displays