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economic 201 | StudyDaddy.com

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

  1. Use this information to construct Abdullah’s demand curve for donuts.

  2. If the price of donuts is $0.20, how many donuts will Abdullah buy?

  3. Show Abdullah’s consumer surplus on your graph. How much consumer surplus would he has

    at a price of $0.20?

  4. 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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