Economics 9708 · AS & A Level · Cross elasticity of demand

Cross elasticity of demand — practice question

The table gives the highest price a consumer would pay for each additional can of fruit juice. One can of fruit juice costs $4 and, after purchasing three cans, the consumer chooses to buy a fourth. In what way does buying the fourth can change his consumer surplus?

  • AIt leaves it unchanged.
  • BIt lowers it by $2.
  • CIt raises it by $4.
  • DIt raises it by $34.

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