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.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter3: Demand And Supply

Section: Chapter Questions

Problem 31RQ: What is consumer surplus? How is it illustrated on a demand and supply diagram?

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