In simple words, debt trap refers to the situation when a company keeps on incurring debt for repaying off the loans taken earlier. It is called trap as the amount of interest on loan keeps on building up making it impossible for the firm to pay it off completely.
Usually the firms starts getting in debt trap when they lack of funds or due to failure of the specific project for which the loans has been taken specifically. Once the firm gets inside such a situation stepping back becomes nearly impassible leading to complete shut down of the firm.
A. inconsistent reasoning; saving $20 is saving $20
As it is mentioned in the question that the electronic store offering a flat $20 off for all prices in the store
Now if Tony chooses with a price of $50 so it would be good offer but for $500 it won't be a good offer as if he invested large value of amount and in return he gets only $20 off which is not a good deal of course.
Therefore this given situation sets an example for inconsistent reasonings
A. under the demand curve and above the $1.50 price for each individual who buys and consumes orange juice.
Consumer surplus represents the difference between what consumers are willing to pay for a good and the actual sales price of the good. In this case, all the area below the demand curve and above the sales price is considered consumer surplus.