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Consumer surplus for an individual and a market following graph shows Dina's weekly demand for apple pie, represented by the blue line. Point A represents a point along her weekly demand ve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. Dina's Weekly Demand 7.50 6.75 6.00 5.25 Demand 4,50 3.75 Price 3.00 2.25 1.50 0.75 2 4 6 8 10 12 14 16 18 20 QUANTITY (Slices of apple pie) m the previous graph, you can tell that Dina is willing to pay $ for her 8th slice of apple pie each week. Because she has to pay only 00 per slice, the consumer surplus she gains from the 8th slice of apple pie is $ pose the price of apple pie were to fall to $2.25 per slice. At this lower price, Dina would receive a consumer surplus of $ from the 8t e of apple pie she buys. following graph shows the weekly market demand for apple pie in a small economy. PRICE (Dollars per slice)

Consumer surplus for an individual and a market following graph shows Dina's weekly demand for apple pie, represented by the blue line. Point A represents a point along her weekly demand ve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. Dina's Weekly Demand 7.50 6.75 6.00 5.25 Demand 4,50 3.75 Price 3.00 2.25 1.50 0.75 2 4 6 8 10 12 14 16 18 20 QUANTITY (Slices of apple pie) m the previous graph, you can tell that Dina is willing to pay $ for her 8th slice of apple pie each week. Because she has to pay only 00 per slice, the consumer surplus she gains from the 8th slice of apple pie is $ pose the price of apple pie were to fall to $2.25 per slice. At this lower price, Dina would receive a consumer surplus of $ from the 8t e of apple pie she buys. following graph shows the weekly market demand for apple pie in a small economy. PRICE (Dollars per slice)

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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**2. Consumer Surplus for an Individual and a Market** The graph illustrates Dina's weekly demand for apple pie, shown by the blue line. Point A marks a point on her weekly demand curve. The market price of apple pie is $3.00 per slice, depicted by the horizontal black line. **Graph Analysis:** - **Title:** Dina's Weekly Demand - **Y-Axis (Price):** Ranges from $0 to $7.50 per slice - **X-Axis (Quantity):** Ranges from 0 to 20 slices of apple pie - **Blue Line:** Represents the demand curve - **Horizontal Black Line at $3.00:** Indicates the market price for apple pie - **Point A:** Located on the demand curve at a higher price than the market price, demonstrating where Dina is willing to pay more for additional slices **Consumer Surplus Explanation:** From the graph, Dina is willing to pay more than the market price of $3.00 per slice for certain quantities. For her 8th slice, fill in the blanks: "Dina is willing to pay $______ for her 8th slice of apple pie each week. Because she has to pay only $3.00 per slice, the consumer surplus she gains from the 8th slice of apple pie is $______." If the price drops to $2.25 per slice, Dina's consumer surplus from the 8th slice increases. Fill in: "At this lower price, Dina would receive a consumer surplus of $______ from the 8th slice of apple pie she buys." **Instructions for Consumer Surplus Shading:** Using the graph: - **Purple Point (Diamond):** Shade for consumer surplus when each slice is $3.00. - **Green Point (Triangle):** Shade for additional consumer surplus when the price decreases to $2.25 per slice. These instructions help visualize how price changes affect consumer surplus, aiding in understanding market dynamics.
Transcribed Image Text:**2. Consumer Surplus for an Individual and a Market** The graph illustrates Dina's weekly demand for apple pie, shown by the blue line. Point A marks a point on her weekly demand curve. The market price of apple pie is $3.00 per slice, depicted by the horizontal black line. **Graph Analysis:** - **Title:** Dina's Weekly Demand - **Y-Axis (Price):** Ranges from $0 to $7.50 per slice - **X-Axis (Quantity):** Ranges from 0 to 20 slices of apple pie - **Blue Line:** Represents the demand curve - **Horizontal Black Line at $3.00:** Indicates the market price for apple pie - **Point A:** Located on the demand curve at a higher price than the market price, demonstrating where Dina is willing to pay more for additional slices **Consumer Surplus Explanation:** From the graph, Dina is willing to pay more than the market price of $3.00 per slice for certain quantities. For her 8th slice, fill in the blanks: "Dina is willing to pay $______ for her 8th slice of apple pie each week. Because she has to pay only $3.00 per slice, the consumer surplus she gains from the 8th slice of apple pie is $______." If the price drops to $2.25 per slice, Dina's consumer surplus from the 8th slice increases. Fill in: "At this lower price, Dina would receive a consumer surplus of $______ from the 8th slice of apple pie she buys." **Instructions for Consumer Surplus Shading:** Using the graph: - **Purple Point (Diamond):** Shade for consumer surplus when each slice is $3.00. - **Green Point (Triangle):** Shade for additional consumer surplus when the price decreases to $2.25 per slice. These instructions help visualize how price changes affect consumer surplus, aiding in understanding market dynamics.
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