Tammy loves donuts. The table shown reflects the value Tammy places on each donut she eats: Value of first donut $0.60 Value of second donut $0.50 Value of third donut $0.40 Value of fourth donut $0.30 Value of fifth donut $0.20 Value of sixth donut $0.10 a. Use this information to construct Tammy's demand curve for donuts. b. If the price of donuts is $0.20, how many donuts will Tammy buy?  c. Show Tammy's consumer surplus on your graph. How much consumer surplus would she have at a price of $0.20?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Tammy loves donuts. The table shown reflects the value Tammy places on each donut she eats:
Value of first donut $0.60
Value of second donut $0.50
Value of third donut $0.40
Value of fourth donut $0.30
Value of fifth donut $0.20
Value of sixth donut $0.10
a. Use this information to construct Tammy's demand curve for donuts.
b. If the price of donuts is $0.20, how many donuts will Tammy buy? 
c. Show Tammy's consumer surplus on your graph. How much consumer surplus would she
have at a price of $0.20? 
d. If the price of donuts rose to $0.40, how many donuts would she purchase now? What
would happen to Tammy's consumer surplus? Show this change on your graph. 

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