Really great job. Thank you so much. I really love it. Thank you so much for all of your help.
a. Suppose a consumer would be willing to pay $6 for the first cup of coffee of the day, $5 for the second cup, $4 for the third cup and $3 for the fourth cup, $2 for the fifth cup…
If the price of a cup of coffee is $3 per cup, how many cups will the consumer buy in a day? ___________________
On the first cup, this consumer earns $3 in “surplus” because she is willing to pay $6 but only pay $3 for the cup
What surplus is earned on the 2nd cup?________________
…the third cup? ___________________
…the fourth cup? __________________
Given that cups are only being consumed in who # units, what is the total surplus this consumer earns on her purchase of 4 cups of coffee per day? ___________________
This is a graph of what the consumer is willing to pay and the market price.
b. The rectangle (fig. below) has an area of 3 = (6-3) x 1 which measures the surplus for the 1st cup.
Fill in the surplus for the 2nd, 3rd, and 4th cups. The sum of your surpluses will equal the total consumer surplus earned by this consumer that you found on the first side data.
What would your consumer surplus look like if you “connected the dots” to draw the D curve – a continuous function?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more