The following graph plots Shen's monthly demand curve (blue line) for burrito bowls. The point denoted by A gives a point along his monthly demand curve. The market price of burrito bowls is $2.25 per bowl, given by the horizontal black line. PRICE (Dollars per bowl) 7.50 6.75 6.00 5.25 4.50 3.75 3.00 + 2.25 1.50 Demand 0.75 + 0 Price 02 4 Shen's Monthly Demand A 14 8 10 12 QUANTITY (burrito bowls) 6 16 18 20 From the previous graph, you can tell that Shen is willing to pay $ bowl, the consumer surplus he gains from the 6th burrito bowl is $ ? for his 6th burrito bowl each week. Because he has to pay only $2.25 per Suppose the price of burrito bowls were to fall to $1.50 per bowl. At this lower price, Shen would receive a consumer surplus of S 6th burrito bowl he buys. The following graph plots the monthly market demand curve (blue line) for burrito bowls in a hypothetical small economy. from the

The following graph plots Shen's monthly demand curve (blue line) for burrito bowls. The point denoted by A gives a point along his monthly demand curve. The market price of burrito bowls is $2.25 per bowl, given by the horizontal black line. PRICE (Dollars per bowl) 7.50 6.75 6.00 5.25 4.50 3.75 3.00 + 2.25 1.50 Demand 0.75 + 0 Price 02 4 Shen's Monthly Demand A 14 8 10 12 QUANTITY (burrito bowls) 6 16 18 20 From the previous graph, you can tell that Shen is willing to pay $ bowl, the consumer surplus he gains from the 6th burrito bowl is $ ? for his 6th burrito bowl each week. Because he has to pay only $2.25 per Suppose the price of burrito bowls were to fall to $1.50 per bowl. At this lower price, Shen would receive a consumer surplus of S 6th burrito bowl he buys. The following graph plots the monthly market demand curve (blue line) for burrito bowls in a hypothetical small economy. 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

The following graph plots Shen's monthly demand curve (blue line) for burrito bowls. The point denoted by A gives a point along his monthly demand.
curve. The market price of burrito bowls is $2.25 per bowl, given by the horizontal black line.
PRICE (Dollars per bowl)
7.50
6.75
6.00
5.25
4.50
3.75
3.00
2.25
1.50
0.75
0
Demand
0
Price
2
4
Shen's Monthly Demand.
A
8 10 12 14
QUANTITY (burrito bowls)
6
16
18
20
From the previous graph, you can tell that Shen is willing to pay $
bowl, the consumer surplus he gains from the 6th burrito bowl is $
for his 6th burrito bowl each week. Because he has to pay only $2.25 per
Suppose the price of burrito bowls were to fall to $1.50 per bowl. At this lower price, Shen would receive a consumer surplus of $
6th burrito bowl he buys.
The following graph plots the monthly market demand curve (blue line) for burrito bowls in a hypothetical small economy.
from the

From the previous graph, you can tell that Shen is willing to pay $
bowl, the consumer surplus he 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, Shen would receive a consumer surplus of $
6th burrito bowl he buys.
4
The following graph plots the monthly market demand curve (blue line) for burrito bowls in a hypothetical small economy.
PRICE (Dollars per bowl)
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 falls to $1.50 per bowl.
7.50
6.75
6.00
5.25 -
4.50
3.75
3.00
2.25
1.50
0.75 +
0
Demand
Small Economy's Monthly Demand
P= $2.25
0
P = $1.50
20
for his 6th burrito bowl each week. Because he has to pay only $2.25 per
40
60 80 100 120 140 160 180
QUANTITY (Thousands of burrito bowls)
200
◇
Initial Consumer Surplus (P = $2.25)
A
Additional Consumer Surplus (P = $1.50)
from the
?

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