Answer all questions in attachments. The following graph shows the weekly market demand for cheesecake In a small economy.Use the purple polnt (diamond symbol) to shade the area representing consumer surplus when the price (P) of cheesecake is $3.00 per slice. Then,use the green polnt (triangle symbol) to shade the area representing additional consumer surplus when the price fals to $2.25 per slice.Small Economy's Wookly Damand7.506.75Iniial Consumar Surplus (P= $3.00)6.005.25Damand4.50Additional Cansumer Surplus (P= $2.25)3.75P= $3.003.002.25P= 12.251500.7520406080100 120 140160 180 200QUANTITY (Thousands of slices of choasacaka)PRICE (Dallars par slice) 1. Consumer surplus for an individual and a marketThe following graph shows Musashi's weekly demand for cheesecake, represented by the blue line. Polnt A represents a polnt along his weeklydemand curve. The market price of cheesecake Is $3.00 per slice, as shown by the horizontal black line.Musashi's Wookly Damand7.506.756.005.25Damand4.50 +3.75Prica3.002.251.500.7524101214161820QUANTITY (Slicas of choasocaka)From the prevlous graph, you can tell that Musashi is willing to pay $$3.00 per slice, the consumer surplus he galns from the sth slice of cheesecake is $for his 8th slice of cheesecake each week. Because he has to pay onlySuppose the price of cheesecake were to fall to $2.25 per slice. At this lower price, Musashi would recelve a consumer surplus of $from thesth slice of cheesecake he buys.PRICE (Dallars par slice)

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Business

Economics

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ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 3.7P

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