**Consumer Surplus and Market Demand**From the previous graph, you can tell that Dmitri is willing to pay *$5.00* for his 8th slice of pizza each week. Since he has to pay only $3.00 per slice, the consumer surplus he gains from the 8th slice of pizza is *$2.00*.Suppose the price of pizza were to fall to $2.25 per slice. At this lower price, Dmitri would receive a consumer surplus of *$2.75* from the 8th slice of pizza he buys.The following graph shows the weekly market demand for pizza in a small economy.**Graph Description:**The graph represents "Small Economy's Weekly Demand" for pizza with the price per slice on the vertical axis and the quantity demanded on the horizontal axis. The demand curve is a downward sloping line, indicating that as price decreases, the quantity demanded increases.- **Price Levels:** - At *P = $3.00*, a horizontal line marks the initial price level where consumer surplus is measured. - At *P = $2.25*, a second horizontal line indicates the new, lower price level.- **Consumer Surplus:** - The area above the price line and below the demand curve at *P = $3.00* represents the initial consumer surplus, indicated by a purple diamond symbol. - Additional consumer surplus gained when the price drops to *P = $2.25* is shown as an area between the two price lines and below the demand curve, marked by a green triangle symbol.Use the purple point (diamond symbol) to shade the initial consumer surplus, and the green point (triangle symbol) to illustrate the additional consumer surplus when the price falls. The graph illustrates Dmitri's weekly demand for pizza, shown by the blue line. Point A, represented by a star, marks a specific point along the demand curve, indicating that at a price of $3.75 per slice, Dmitri demands 8 slices of pizza weekly. The market price of pizza is fixed at $3.00 per slice, depicted by the horizontal black line.**Graph Details:**- **X-axis (Horizontal):** Quantity (Slices of pizza), ranging from 0 to 20 slices.- **Y-axis (Vertical):** Price (Dollars per slice), ranging from $0.00 to $7.50.- **Demand Curve:** A downward-sloping blue line, reflecting the inverse relationship between price and quantity demanded.- **Price Line:** A horizontal black line at $3.00, representing the market price of pizza.- **Intersection (Point A):** At coordinates (8, 3.75), indicating the quantity and price where Dmitri’s specific demand is highlighted.

From the previous graph you can tell that dmitri is willing to pay 3.75 dollars for his 8 slice of…

Answered: From the previous graph, you can tell…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following graph shows Hilary's weekly demand for cheesecake, represented by the blue line. Point A represents a point along her weekly demand curve. The market price of cheesecake is $3.00 per slice, as shown by the horizontal black line From the previous graph, you can tell that Hilary is willing to pay $_______ for her 8th slice of cheesecake each week. Because she has to pay only$3.00 per slice, the consumer surplus she gains from the 8th slice of cheesecake is $_______. Suppose the price of cheesecake were to fall to $2.25 per slice. At this lower price, Hilary would receive a consumer surplus of $_______.from the 8th slice of cheesecake she buys.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 $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the…
Ariya likes to play golf. The number of times per year that she plays depends on both the price of playing a round of golf as well as Ariya's income and the cost of other types of entertainment-in particular, how much it costs to go see a movie instead of playing golf. The three demand schedules in the table below show how many rounds of golf per year Ariya will demand at each price under three different scenarios. In scenario D1, Ariya's income is $80,0o00 per year and movies cost $15 each. In scenario D2, Ariya's income is also $80,000 per year, but the price of seeing a movie rises to $17. And in scenario D3, Ariya's income goes up to $100,000 per year, while movies cost $17. Scenario D1 D2 D3 Income per year $80,000 $80.000 $100,000 Price of movie ticket $15 $17 $17 Price of Golf Quantity Demanded $55 15 10 15 $40 25 15 30 $25 40 20 50 Instructions: Round your answers to two decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of…
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Can you help me answer this macroeconomics theory question. It's all question 7 it's parts a through c
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5
ECON302 TPS2: Demand Suppose that Graham enjoys painting green people. He has very particular preferences and must have exactly 3 gallons of yellow paint for each 2 gallons of blue paint. Let Y be the number of gallons of yellow paint and B be the number of gallons of blue paint. Also, let PÅ be the price of blue paint. Suppose Graham has $20 to spend on paint. Also, the price of yellow paint is Py = $1 per gallon. a) Graph Graham's price consumption curve for the prices PB = $1, and PB = 2, PB = $4. Please put the number of gallons of B on the vertical axis and the number of gallons of Y on the horizontal axis. Be sure to label your graph carefully and accurately.
Marvin has a Cobb-Douglas utility function, 0.5 0.5 U= 91 92 his income is Y = $900, and initially he faces prices of p₁ = $1 and p2 = $4. If p₁ increases from $1 to $2, what are his compensating variation (CV), change in consumer surplus (ACS), and equivalent variation (EV)? Marvin's change in consumer surplus (ACS) is $ minus sign if necessary.) Marvin's compensating variation (CV) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.) (Enter your response rounded to two decimal places and include a Marvin's equivalent variation (EV) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.)

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