Janice is willing to pay $100 for the first pair of shoes, $80 for the second pair, $50 for a third, and $30 for a fourth.  If shoes cost $50, Janice will buy _____ pairs of shoes and her total consumer surplus will equal _______.

7. Consumer surplus for an individual and a market The following graph shows Shen's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demand. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. PRICE (Dollars per slice) PRICE (Dollars per slice) 7.50 0.75 6.00 4.50 3.75 7.50 3.00 6.75 2.25 6.00 1.50 5.25 Demand 0.75 4.50 0 3.75 3.00 2.25 1.50 0.75 0 From the previous graph, you can tell that Shen is willing to pay S for his 8th slice of apple pie each week. Since he has to pay only $3.00 per slice, the consumer surplus he gains from the 8th slice of apple pie is S 5.25 Demand Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Shen would receive a consumer surplus of S slice of apple pie he buys. The following graph shows the weekly market demand for apple pie in a small economy. 0 Price Use the purple point (diamond symbol) to shade the area representing consumer…

Price (dollars per gallon) S2 $5.50 3.50 2.50 D Quantity (millions of gallons per month) 30 40 45 Assume the graph above illustrates a new tax put into the market for soft drinks. S2 is the supply curve with the $2 tax in place. What price would consumers pay if the tax was placed on consumers instead of producers? 1) $2.00 O 2) $3.50 3) $2.50 4) $1.50

6. Consumer Surplus Valerie buys an iPhone for $240 and gets a consumer surplus of $160. Her willingness to pay for an iPhone is $ If she had bought the iPhone on sale for $180, her consumer surplus would have been $ If the price of the iPhone had been $450, her consumer surplus would have been $