The graph below is a market demand curve for steaks. $8 A $6 B D C...

 

Transcribed Image Text:

The graph below is a market demand curve for steaks. $8 A $6 B D C $4 E 0 3 6 Q (Million) a. Clearly label the consumer surplus associated with a market price of $6 using the letters on the graph from the previous page. b. Suppose the market price decreases to $4. Are consumers better off or worse off because of this decrease in market price? Using the letters on the previous graph, label the change in consumer surplus. c. Calculate the dollar amount of the consumer surplus in (a). Be careful of your units of measurement. d. Calculate the dollar amount of the change in consumer surplus in (b). Be careful of your units of measurement. The graph below is a market demand curve for steaks. $8 A $6 B D C $4 E 0 3 6 Q (Million) a. Clearly label the consumer surplus associated with a market price of $6 using the letters on the graph from the previous page. b. Suppose the market price decreases to $4. Are consumers better off or worse off because of this decrease in market price? Using the letters on the previous graph, label the change in consumer surplus. c. Calculate the dollar amount of the consumer surplus in (a). Be careful of your units of measurement. d. Calculate the dollar amount of the change in consumer surplus in (b). Be careful of your units of measurement.