4. Consumer surplus for an individual and a marketThe following graph shows Teresa's weekly demand for cheesecake, represented by the blue line. Point A represents a point along her weekly demandcurve. The market price of cheesecake is $3.00 per slice, as shown by the horizontal black line.Teresa's Weekly Demand7.506.756.005.25Demand4,503.75Price3.002.251.500.754.6.8.101214161820QUANTITY (Slices of cheesecake)PRICE (Dollars per slice) a Search this courseHomework (Ch 07)From the previous graph, you can tell that Teresa is willing to pay sfor her 8th slice of cheesecake each week. Because she has to pay only$3.00 per slice, the consumer surplus she gains from the 8th slice of cheesecake is $Suppose the price of cheesecake were to fall to $2.25 per slice. At this lower price, Teresa would receive a consumer surplus of $from the8th slice of cheesecake she buys.The following graph shows the weekly market demand for cheesecake in a small economy.

The consumer surplus is the difference between the price the consumer is willing to pay and the…

From the previous graph, you can tell that Teresa is willing to pay s for her 8th slice of cheesecake each week. Because she has to pay only $3.00 per slice, the consumer surplus she gains from the 8th slice of cheesecake is $ Suppose the price of cheesecake were to fall to $2.25 per slice. At this lower price, Teresa would receive a consumer surplus of $ from the 8th slice of cheesecake she buys. The following graph shows the weekly market demand for cheesecake in a small economy.

From the previous graph, you can tell that Teresa is willing to pay s for her 8th slice of cheesecake each week. Because she has to pay only $3.00 per slice, the consumer surplus she gains from the 8th slice of cheesecake is $ Suppose the price of cheesecake were to fall to $2.25 per slice. At this lower price, Teresa would receive a consumer surplus of $ from the 8th slice of cheesecake she buys. The following graph shows the weekly market demand for cheesecake in a small economy.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 15PAE

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