Table 4-1

-Refer to Table 4-1.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 4-1
 
-Refer to Table 4-1.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

CConsumer surplus increases when the price of a good falls because consumers are paying less than what they are willing to pay, thus increasing the difference between their willingness to pay and the actual price. Without the specific values from Table 4-1, we can't calculate the exact numbers, but the principle that consumer surplus increases with a price decrease is correct, making option A plausible. Option C also suggests an increase in consumer surplus, which aligns with economic principles, although without the table, we can't verify the exact figures. Options B and D involve specific actions by the consumers and the distribution of consumer surplus, which without the table's data, cannot be accurately assessed. However, the general principle that a decrease in price leads to an increase in consumer surplus supports options A and C.

Table 4-1 -Refer to Table 4-1.The Table Above Lists the Highest Prices