Sarah's demand curve for whiskey has the same slope as Pete's;however,it lies to the right of Pete's.An increase in the price of whiskey will cause
A)Sarah to incur a greater loss of consumer surplus than Pete will.
B)Pete to incur a greater loss of consumer surplus than Sarah will.
C)Sarah and Pete to incur the same loss of consumer surplus.
D)Sarah's demand curve to shift closer to Pete's.

Question

Quizplus · Accepted Answer

Since Sarah's demand curve lies to the right of Pete's, it indicates that at any given price, Sarah is willing to purchase more whiskey than Pete. Therefore, an increase in the price of whiskey would affect a larger quantity of whiskey for Sarah than for Pete, leading to a greater loss of consumer surplus for Sarah.

Sarah's Demand Curve for Whiskey Has the Same Slope as Pete's;however,it