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  3. 2 consumer surplus for an individual and a market the...

Question: 2 consumer surplus for an individual and a market the...

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2. Consumer surplus for an individual and a market The following graph shows Jacquess weekly demand for cheesecake, represented by the blue line. Point A represents a point along his weekly demand curve. The market price of cheesecake is $1.25 per slice, as shown by the horizontal black line. Jacquess Weekly Demand 2.50 Demand 2.25 2.00 1 75 1.50 Price 1 25 1,00 0.75 0.50 0 25 0 2468 101214 16 18 20 QUANTITY (Slices of cheesecake) for his 8th slice of cheesecake each week. Because he has to pay only From the previous graph, you can tell that Jacques is willing to pay s $1.25 per slice, the consumer surplus he gains from the 8th slice of cheesecake is s Suppose the price of cheesecake were to fall to $1.00 per slice. At this lower price, Jacques would receive a consumer surplus or s 8th slice of cheesecake he buys from the
The following graph shows the weekly market demand for cheesecake in a small economy Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of cheesecake is $1.25 per slice. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $1.00 per slice. Small Economys Weekly Demand 250、Demand 225 2.00 1.75 1 .50 ital Consumer Surplus (P $1.25) Additional Consumer Surplus (P 1.00) P $1.25 1.25 1.00 0.75 0.50 0.25 P $1.00 0 20 40 0100 120 140 180 180 200 QUANTITY (Thousands of slices of cheesecake)
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