From the previous graph, you can tell that Eileen is willing to pay Sper bowl, the consumer surplus she gains from the 6th burrito bowl isSuppose the price of burrito bowls were to fall to $1.50 per bowl. At this lower price, Eileen would receive a consumer surplus of5th burrito bowl she buys.The following graph plots the monthly market demand curve (blue line) for burrito bowls in a hypothetical small economy.PRICE (Dolars per book)Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of burrito bowls is $2.25 per bowl. Then,use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price fails to $1.50 per bowl7:506759.005254.N3753001.508.75.0DemandP=5225P $1.50for her 6th burrito bowl each week. Because she has to pay only $2.25Small Economy's Monthly DemandNO 00 00 100 120 140 100 140 200QUANTITY (Thousands of burito bowls)oIntal Consumer Surplus (P-$225)Afrom theAdditional Consumer Surplus (P-$1.50) 2. Consumer surplus for an individual and a marketThe following graph plots Eileen's monthly demand curve (blue line) for burrito bowls. The point denoted by A gives a point along her monthly demandcurve. The market price of burrito bowls is $2.25 per bowl, given by the horizontal black line.PRICE (Dollars per bow)7508.756.005.254563.753.002251:500.7506DemandPrice+24Eileen's Monthly DemandN& 10 12 14QUANTITY (burto bowls)1618 20

From the above graph it is clear that for the consumption of the 6th bundle the consumer is willing…

owl, the consumer surplus she gains from the 6th burrito bowl is ose the price of burrito bowls were to fall to $1.50 per bowl. At this lower price, Eleen would receive a consumer surplus of urrito boat she buys. lowing graph plots the monthly market demand curve (blue line) for burrito bowls in a hypothetical small economy 50 he purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of burrito bowls is $2.25 per bowl Ther, e green point (triangle symbol) to shade the area representing additional consumer surplus when the price fails to $1.50 per bowl 10 M 10. 3 Demand P=5225 P $1.50 201 Small Economy's Monthly Demand 00 40 11:00 120 140 QUANTITY (Thousands of burnt bowls) 10:200 Intal Consumer Surplus (P-$225) A pay tray s Additional Consumer Surplus (P-$1.50) from the

owl, the consumer surplus she gains from the 6th burrito bowl is ose the price of burrito bowls were to fall to $1.50 per bowl. At this lower price, Eleen would receive a consumer surplus of urrito boat she buys. lowing graph plots the monthly market demand curve (blue line) for burrito bowls in a hypothetical small economy 50 he purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of burrito bowls is $2.25 per bowl Ther, e green point (triangle symbol) to shade the area representing additional consumer surplus when the price fails to $1.50 per bowl 10 M 10. 3 Demand P=5225 P $1.50 201 Small Economy's Monthly Demand 00 40 11:00 120 140 QUANTITY (Thousands of burnt bowls) 10:200 Intal Consumer Surplus (P-$225) A pay tray s Additional Consumer Surplus (P-$1.50) from the

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

From the previous graph, you can tell that Eileen is willing to pay S
per bowl, the consumer surplus she gains from the 6th burrito bowl is
Suppose the price of burrito bowls were to fall to $1.50 per bowl. At this lower price, Eileen would receive a consumer surplus of
5th burrito bowl she buys.
The following graph plots the monthly market demand curve (blue line) for burrito bowls in a hypothetical small economy.
PRICE (Dolars per book)
Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of burrito bowls is $2.25 per bowl. Then,
use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price fails to $1.50 per bowl
7:50
675
9.00
525
4.N
375
300
1.50
8.75
.
0
Demand
P=5225
P $1.50
for her 6th burrito bowl each week. Because she has to pay only $2.25
Small Economy's Monthly Demand
NO 00 00 100 120 140 100 140 200
QUANTITY (Thousands of burito bowls)
o
Intal Consumer Surplus (P-$225)
A
from the
Additional Consumer Surplus (P-$1.50)

2. Consumer surplus for an individual and a market
The following graph plots Eileen's monthly demand curve (blue line) for burrito bowls. The point denoted by A gives a point along her monthly demand
curve. The market price of burrito bowls is $2.25 per bowl, given by the horizontal black line.
PRICE (Dollars per bow)
750
8.75
6.00
5.25
456
3.75
3.00
225
1:50
0.75
0
6
Demand
Price
+
2
4
Eileen's Monthly Demand
N
& 10 12 14
QUANTITY (burto bowls)
16
18 20

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