Assume the market price for lemon grass is $4.00 per metric, but most buyers are willing to pay more than the market price.At the market price of $4.00, the quantity of lemon grass demanded is 1500 metrics per month, and quantity demanded does not reach zero until the price reaches $30.00 per metric.Construct a graph showing this data, calculate the total consumer surplus in the market for lemon grass, and show the consumer surplus on the graph.
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The Answer of Assume the market price for lemon grass is $4.00 per metric, but most buyers are willing to pay more than the market price.At the market price of $4.00, the quantity of lemon grass demanded is 1500 metrics per month, and quantity demanded does not reach zero until the price reaches $30.00 per metric.Construct a graph showing this data, calculate the total consumer surplus in the market for lemon grass, and show the consumer surplus on the graph.
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Assume the Market Price for Lemon Grass Is $4