The following graph shows Raphael's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demandcurve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line.Raphael's Weekly Demand7.506.756.005.25Demand4.503.75Price3.002.251.500.754101214161820QUANTITY (Slices of apple pie)From the previous graph, you can tell that Raphael is willing to pay sfor his 8th slice of apple pie each week. Because he has to pay only$3.00 per slice, the consumer surplus he gains from the 8th slice of apple pie is SSuppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Raphael would receive a consumer surplus of 5from the8th slice of apple pie he buys.The following graph shows the weekly market demand for apple pie in a small economy.Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of apple pie is $3.00 per slice. Then, usethe green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $2.25 per slice.(?Small Economy's Weekly Demand7.506.75Initial Consumer Surplus (P = $3.00)6.005.25Demand4.50Additional Consumer Surplus (P = $2.25)3.75P= $3.003.002.25P= $2.251.500.752040 60 80100120 140160 180 200QUANTITY (Thousands of slices of apple pie)PRICE (Dollars per sicePRICE (Dollars per slic

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The following graph shows Raphael's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demand curve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. Raphael's Weekly Demand 7.0 6.75 6.00 525 Demand 450 3.75 Price 300 2.2 1.50 0.75 10 12 14 16 18 20 QUANTITY (Slices of apple pie) From the previous graph, you can tell that Raphael is willing to pay 5 $3.00 per slice, the consumer surplus he gains from the 8th slice of apple pie is [5 ] for his 8th slice of apple pie each week. Because he has to pay only Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Raphael would receive a consumer surplus of s from the sth slice of apple pie he buys. PRICE (Dolars per slice)

The following graph shows Raphael's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demand curve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. Raphael's Weekly Demand 7.0 6.75 6.00 525 Demand 450 3.75 Price 300 2.2 1.50 0.75 10 12 14 16 18 20 QUANTITY (Slices of apple pie) From the previous graph, you can tell that Raphael is willing to pay 5 $3.00 per slice, the consumer surplus he gains from the 8th slice of apple pie is [5 ] for his 8th slice of apple pie each week. Because he has to pay only Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Raphael would receive a consumer surplus of s from the sth slice of apple pie he buys. PRICE (Dolars per slice)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 7P

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