The following graph shows the weekly market demand for cheesecake in a small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of cheesecake 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. Small Economy's Weekly Demand 7,50 6.75 Initial Consumer Surplus (P = $3.00) 6.00 5.25 Demand Additional Consumer Surplus (P = $2.25) 4.50 3.75 P = $3.00 3.00 2.25 P = $2.25 1.50 0.75 20 40 60 80 100 120 140 160 180 200 QUANTITY (Thousands of slices of cheesecake) PRICE (Dollars per slice)

The following graph shows the weekly market demand for cheesecake in a small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of cheesecake 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. Small Economy's Weekly Demand 7,50 6.75 Initial Consumer Surplus (P = $3.00) 6.00 5.25 Demand Additional Consumer Surplus (P = $2.25) 4.50 3.75 P = $3.00 3.00 2.25 P = $2.25 1.50 0.75 20 40 60 80 100 120 140 160 180 200 QUANTITY (Thousands of slices of cheesecake) PRICE (Dollars per slice)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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