11. Cops love donuts. The tableshown reflects the value the cops place on each donut they eat:...
Question:
11. Cops love donuts. The tableshown reflects the value the cops place on each donut they eat: (8points total)
VALUE OF FIRST DONUT | $0.60 |
VALUE OF SECOND DONUT | $0.50 |
VALUE OF THIRD DONUT | $0.40 |
VALUE OF FOURTH DONUT | $0.30 |
VALUE OF FIFTH DONUT | $0.20 |
a. Use this information to construct the cops’s demand curve fordonuts.
b. If the price of donuts is $0.20, how many donuts willcops buy?
c. Show cops’s consumer surplus on your graph. How muchconsumer surplus would they have at a price of $0.20?
d.
If the price of donuts rose to $0.40, how many donuts would theypurchase now? What would happen to the cops's consumer surplus?Show this change on your graph.
Taxation Of Individuals And Business Entities 2015
ISBN: 9780077862367
6th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver