Question: Is this shaded correctly From the previous graph, you can tell that Megan is willing to pay $4.00 for her 6th quinoa bowl each week.
Is this shaded correctly
From the previous graph, you can tell that Megan is willing to pay $4.00 for her 6th quinoa bowl each week. Because she has to pay only $3.00 per bowl, the consumer surplus she gains from the 6th quinoa bowl is $1.00 . Suppose the price of quinoa bowls were to fall to $2.00 per bowl. At this lower price, Megan would receive a consumer surplus of $2.00 from the 6th quinoa bowl she buys. The following graph plots the monthly market demand curve (blue line) for quinoa bowls in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of quinoa bowls is $3.00 per bowl. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $2.00 per bowl. Small Economy's Monthly Demand 10.00 9.00 8.00 Initial Consumer Surplus (P = $3.00) 7.00 4 6.00 Additional Consumer Surplus (P = $2.00) Demand PRICE (Dollars per bowl) 5.00 4.0 P = $3.00 3.0 2.00 P = $2.00 1.00 20 40 60 80 100 120 140 160 180 200 QUANTITY (Thousands of quinoa bowls)Step by Step Solution
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