QUESTION TWO A) A consumer paid GH¢ 60 for 6 units of good Y. i. Illustrate the above information on a diagram and show the sections that represent consumer surplus and actual total expenditure. ii. Compute the consumer's planned total expenditure. iii. Compute the consumer surplus. iv. What happens to the size of the consumer surplus when the market price increases? Briefly explain your answer.

QUESTION TWO A) A consumer paid GH¢ 60 for 6 units of good Y. i. Illustrate the above information on a diagram and show the sections that represent consumer surplus and actual total expenditure. ii. Compute the consumer's planned total expenditure. iii. Compute the consumer surplus. iv. What happens to the size of the consumer surplus when the market price increases? Briefly explain your answer.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter7: Consumers, Producers, And The Efficiency Of Markets

Section: Chapter Questions

Problem 4PA

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