From the previous graph, you can tell that Simone 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 S Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Simone would receive a consumer surplus of S 18th slice of apple pie she buys. The following graph shows the weekly market demand for apple pie in a small economy. Ise the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of apple pie is $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $2.25 per slice. ? Dollars per slice) 7.50 6.75 6.00 5.25 Demand 4.50 3.75 3.00 2.25 1.50 0.75 0 0 P= $3.00 P=$2.25 Small Economy's Weekly Demand 40 80 100 120 160 180 200 140 QUANTITY (Thousands of slices of apple pie) 20 60 Initial Consumer Surplus (P-$3.00) from the Additional Consumer Surplus (P-$2.25)

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Chapter1: Making Economics Decisions
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From the previous graph, you can tell that Simone 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 S
Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Simone would receive a consumer surplus of $
8th slice of apple pie she buys.
The following graph shows the weekly market demand for apple pie in a small economy.
Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of apple pie is $3.00 per slice. Then, use
the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $2.25 per slice.
PRICE (Dollars per slice)
7.50
6.75
6.00
5.25
4.50
3.75
3.00
2.25
1.50
0.75
0
Demand
P = $3.00
P = $2.25
Small Economy's Weekly Demand
0 20 40 60 80 100 120
160 180 200
140
QUANTITY (Thousands of slices of apple pie)
Initial Consumer Surplus (P-$3.00)
from the
Additional Consumer Surplus (P-$2.25)
Transcribed Image Text:From the previous graph, you can tell that Simone 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 S Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Simone would receive a consumer surplus of $ 8th slice of apple pie she buys. The following graph shows the weekly market demand for apple pie in a small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of apple pie is $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $2.25 per slice. PRICE (Dollars per slice) 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 Demand P = $3.00 P = $2.25 Small Economy's Weekly Demand 0 20 40 60 80 100 120 160 180 200 140 QUANTITY (Thousands of slices of apple pie) Initial Consumer Surplus (P-$3.00) from the Additional Consumer Surplus (P-$2.25)
The following graph shows Simone's weekly demand for apple pie, represented by the blue line. Point A represents a point along her weekly demand
curve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line.
PRICE (Dollars per slice)
7.50
6.75
6.00
5.25 Demand
4.50
3.75
3.00
2.25
1.50
0.75
0
0
Price
2
4
Simone's Weekly Demand
10
12
14
6 8
QUANTITY (Slices of apple pie)
16
18 20
Transcribed Image Text:The following graph shows Simone's weekly demand for apple pie, represented by the blue line. Point A represents a point along her weekly demand curve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. PRICE (Dollars per slice) 7.50 6.75 6.00 5.25 Demand 4.50 3.75 3.00 2.25 1.50 0.75 0 0 Price 2 4 Simone's Weekly Demand 10 12 14 6 8 QUANTITY (Slices of apple pie) 16 18 20
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