From the previous graph, you can tell that Kenji is willing to pay for his 8th slice of apple pie each week. Because he has to pay only $1.25 per slice, the consumer surplus he gains from the 8th slice of apple pie is Suppose the price of apple pie were to fall to $1.00 per slice. At this lower price, Kenji would receive a consumer surplus of from the 8th slice of apple pie he buys.

From the previous graph, you can tell that Kenji is willing to pay for his 8th slice of apple pie each week. Because he has to pay only $1.25 per slice, the consumer surplus he gains from the 8th slice of apple pie is Suppose the price of apple pie were to fall to $1.00 per slice. At this lower price, Kenji would receive a consumer surplus of from the 8th slice of apple pie he buys.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 1PA

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