Multiple Choice
Sarah and David both have linear demand curves for lemonade.Sarah's demand is more elastic than David's.At the current price of $0.50 per glass,they both choose to buy 5 glasses.A change in the price of lemonade to $0.75 per glass will
A) decrease Sarah's consumer surplus more than David's.
B) decrease David's consumer surplus more than Sarah's.
C) increase Sarah's consumer surplus more than David's.
D) increase David's consumer surplus more than Sarah's.
Correct Answer:
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