Megan loves donuts. The table shown reflects the value Megan places on each donut she eats:

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

Question

Megan loves donuts. The table shown reflects the value Megan places on each donut she eats:
  
a. Use this information to construct Megan's demand curve for donuts.
b. If the price of doughnuts is $0.20, how many donuts will Megan buy?
c. Show Megan's consumer surplus on your graph. How much consumer surplus would she have at a price of $0.20?
d. If the price of doughnuts rose to $0.40, how many donuts would she purchase now? What would happen to Megan's consumer surplus? Show this change on your graph.

Quizplus · Accepted Answer

The Answer of Megan loves donuts. The table shown reflects the value Megan places on each donut she eats:
  
a. Use this information to construct Megan's demand curve for donuts.
b. If the price of doughnuts is $0.20, how many donuts will Megan buy?
c. Show Megan's consumer surplus on your graph. How much consumer surplus would she have at a price of $0.20?
d. If the price of doughnuts rose to $0.40, how many donuts would she purchase now? What would happen to Megan's consumer surplus? Show this change on your graph.

Megan Loves Donuts