Business, 11.04.2020 00:56 plutoaliko99

Chad is willing to pay $5.00 to get his first cup of morning latté; he is willing to pay $4.50 for a second cup. He buys his first cup from a vendor selling latté for $3.75 per cup. He returns to that vendor later in the morning to find that the vendor has increased her price to $3.90 per cup. Chad buys a second cup. Which of the following statements is correct?
a. Chad is irrational in that he willing to pay a different price for his second cup of latte that what he is willing to pay for his first cup of latte.
b. Chad's willingness to pay for his second cup of latte was smaller than his willingness to pay his first cup of latte.
c. Chad's consumer surplus on his second cup of latte was larger than his consumer surplus on his first cup of latte.
d. Chad places a higher value on his second cup of latte than on his first cup of latte.

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