01000000Jed8 140070000&ckarn;_1517319866c Aska: Student Question ×1 ,Google The
ID: 1149657 • Letter: 0
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01000000Jed8 140070000&ckarn;_1517319866c Aska: Student Question ×1 ,Google The following graph shows Deborah's weekly demand for apple pie, represented by the blue line. Point A represents a point along her weekly demand curve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. Deborah's Weekly Demand 8.75 3.75 3.00 QUANTITY (Sices of apple pie) From the previous graph, you can tell hat Deborah is willing to pay for her sth aice of aple sie each week. Because she has to pay S only $3.00 per slice, the consumer surplus she gains from the 8th slice of apple pie is from the Suppese the price of apple pie were to fall to $2.25 per slice. At this lower price, Deborah would receive a consumer surplus oflS 8th slice of apple pie she buys. The following graph shows the weekly market demand for apple pie in a small economy P) of apple pie is $3.00 per sice. Then, use Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price( upExplanation / Answer
From the previous graph, we can see that Deborah is willing to pay $3.75 for the 8th slice of apple pie each week. Because she has to pay only $3 per slice, the consumer surplus she gains from the 8th slice of apple pie is $7.50
[ 1/2(12)(2.25) - 1/2(8)(1.50)]
If the price of apple were to fall to $2.25 per pie, in that case, she would obtain a consumer surplus of $ 18 from the 8th slice she buys.
[1/2(16)(3) - 1/2(8)(1.50)]
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