Quiz 3 1) (3 points) Which of the following statements is not correct about a market...

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Quiz 3 1) (3 points) Which of the following statements is not correct about a market in equilibrium? A. The price determines which buyers and which sellers participate in the market. B. Those sellers whose costs are less than the price choose to produce and sell the good. C. Consumer surplus will be equal to producer surplus. D. Those buyers who value the good more than the price choose to buy the good. Name 2) (3 points) Chad is willing to pay $5.00 to get his first cup of morning latté. He buys a cup from a vendor selling latté for $3.75 per cup. Chad's consumer surplus is: A. $5.00. B. $8.75. C. $3.75. D. $1.25. 3) For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only three buyers of oranges. Allison Bob Charisse First Orange $2.00 $1.50 $0.75 Second Orange $1.50 $1.00 $0.25 If the market price is $0.65... a) How many oranges will Allison consume? (3 points) b) What is Allison's consumer surplus? (3 points) c) What is the consumer surplus in this market? (3 points) Third Orange $0.75 $0.60 $0 Quiz 3 1) (3 points) Which of the following statements is not correct about a market in equilibrium? A. The price determines which buyers and which sellers participate in the market. B. Those sellers whose costs are less than the price choose to produce and sell the good. C. Consumer surplus will be equal to producer surplus. D. Those buyers who value the good more than the price choose to buy the good. Name 2) (3 points) Chad is willing to pay $5.00 to get his first cup of morning latté. He buys a cup from a vendor selling latté for $3.75 per cup. Chad's consumer surplus is: A. $5.00. B. $8.75. C. $3.75. D. $1.25. 3) For each of three potential buyers of oranges, the table displays the willingness to pay for the first three oranges of the day. Assume Allison, Bob, and Charisse are the only three buyers of oranges. Allison Bob Charisse First Orange $2.00 $1.50 $0.75 Second Orange $1.50 $1.00 $0.25 If the market price is $0.65... a) How many oranges will Allison consume? (3 points) b) What is Allison's consumer surplus? (3 points) c) What is the consumer surplus in this market? (3 points) Third Orange $0.75 $0.60 $0

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The detailed answer for the above question is provided below 1 Consumer surplus will be equal to pro... View the full answer