3. Suppose the graph below represents my demand curve for cups of coffee per wee

Question

3. Suppose the graph below represents my demand curve for cups of coffee per week. a. Quantity of cups of coffee purchased per week (a) Given this graph: If I have consumed one cup of coffee, how much am I willing to pay for an additional cup of coffee? (b) Given this graph: If I have consumed one cup of coffee, how much am I willing to pay for an additional half a cup of coffee? (e) When I consume a cup of coffe, it takes many sips. We would like to use the demand curve to answer the following question. When I consume my second cup of coffee, do I enjoy the sips from the first half of the second cup of coffee more than the 'typical' sip of the second cup of coffee, where here we are equating enjoyment with willingness to pay

Explanation / Answer

A 3 see the value of line at 2

B 3(0.5)=1.5

C No enjoyment given is same since demand curve is horizontal at 2 cups

D 4 cups as shown by irregular demand curve

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