The following graph shows Raphael's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demand curve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. Raphael's Weekly Demand 7.0 6.75 6.00 525 Demand 450 3.75 Price 300 2.2 1.50 0.75 10 12 14 16 18 20 QUANTITY (Slices of apple pie) From the previous graph, you can tell that Raphael is willing to pay 5 $3.00 per slice, the consumer surplus he gains from the 8th slice of apple pie is [5 ] for his 8th slice of apple pie each week. Because he has to pay only Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Raphael would receive a consumer surplus of s from the sth slice of apple pie he buys. PRICE (Dolars per slice)
The following graph shows Raphael's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demand curve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. Raphael's Weekly Demand 7.0 6.75 6.00 525 Demand 450 3.75 Price 300 2.2 1.50 0.75 10 12 14 16 18 20 QUANTITY (Slices of apple pie) From the previous graph, you can tell that Raphael is willing to pay 5 $3.00 per slice, the consumer surplus he gains from the 8th slice of apple pie is [5 ] for his 8th slice of apple pie each week. Because he has to pay only Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Raphael would receive a consumer surplus of s from the sth slice of apple pie he buys. PRICE (Dolars per slice)
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 7P
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