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Suppose That Irina Is Prepared to Pay a Maximum of $2.40

Question 3

Multiple Choice

Suppose that Irina is prepared to pay a maximum of $2.40 for her first glass of cranberry juice,but for each subsequent glass she is only prepared to pay 20 cents less than the previous one.
-Refer to the above information to answer this question.If the price of cranberry juice is 80 cents a glass,how much consumer surplus will she receive as a result of her purchases?


A) 0.
B) $0.80.
C) $13.60.
D) $14.40.
E) Cannot be determined.

Correct Answer:

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