Solved

Tammy Loves Croissants ​
A Use This Information to Construct Tammy's Demand Curve for Places

Question 48

Essay

Tammy loves croissants. The table shown reflects the value Tammy places on each croissants she eats:

 Value of first croissant 0.60 Value of second croissant 0.50 Value of third croissant 0.40 Value of fourth croissant 0.30 Value of fifth croissant 0.20 Value of sixth croissant 0.10\begin{array}{|l|l|}\hline \text { Value of first croissant } & € 0.60 \\\hline \text { Value of second croissant } & € 0.50 \\\hline \text { Value of third croissant } & € 0.40 \\\hline \text { Value of fourth croissant } & € 0.30 \\\hline \text { Value of fifth croissant } & € 0.20 \\\hline \text { Value of sixth croissant } & € 0.10 \\\hline\end{array}

a. Use this information to construct Tammy's demand curve for croissants.
b. If the price of croissants is €0.20, how many croissants will Tammy buy?
c. Show Tammy's consumer surplus on your graph. How much consumer surplus would she have at a price of €0.20?
d. If the price of croissants rose to €0.40, how many croissants would she purchase now? What would happen to Tammy's consumer surplus? Show this change on your graph.

Correct Answer:

verifed

Verified

a. blured image b. At a price of €0.20, Tammy would ...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents