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Abdullah loves donuts. The table below reflects the value Abdullah places on each donut he eats:
value of first donut $0.60
value of second donut $0.50
value of therd donut $0.40
value of fourth donut $0.30
value of fifth donut $0.20
value of six dnut $0.10
Use this information to construct Abdullah’s demand curve for donuts.
If the price of donuts is $0.20, how many donuts will Abdullah buy?
Show Abdullah’s consumer surplus on your graph. How much consumer surplus would he has
at a price of $0.20?
If the price of donuts rose to $0.40, how many donuts would he purchase now? What would
happen to Abdullah’s consumer surplus? Show this change on your graph.
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