ppose the price of acai bowls were to fall to $1.50 per bowl. At this lower price, Jake would receive a consumer surplus of $ ai bowl he buys. e following graph plots the monthly market demand curve (blue line) for acai bowls in a hypothetical small economy. e the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of acai bowls is $2.25 per bowl. Then, use e green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $1.50 per bowl. 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 0 Demand P = $2.25 P = $1.50 20 Small Economy's Monthly Demand 60 80 100 120 140 160 QUANTITY (Thousands of acai bowls) 40 180 200 Initial Consumer Surplus (P = $2.25) A Additional Consumer Surplus (P = $1.50) from the 6th ?

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Suppose the price of acai bowls were to fall to $1.50 per bowl. At this lower price, Jake would receive a consumer surplus of $
acai bowl he buys.
The following graph plots the monthly market demand curve (blue line) for acai bowls in a hypothetical small economy.
Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of acai bowls is $2.25 per bowl. Then, use
the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $1.50 per bowl.
PRICE (Dollars per bowl)
7.50
6.75
6.00
5.25
4.50
3.75
3.00
2.25
1.50
0.75
0
0
Demand
P = $2.25
P = $1.50
20
Small Economy's Monthly Demand
60 80 100 120 140 160 180
QUANTITY (Thousands of acai bowls)
40
200
Initial Consumer Surplus (P = $2.25)
from the 6th
Additional Consumer Surplus (P = $1.50)
Transcribed Image Text:Suppose the price of acai bowls were to fall to $1.50 per bowl. At this lower price, Jake would receive a consumer surplus of $ acai bowl he buys. The following graph plots the monthly market demand curve (blue line) for acai bowls in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of acai bowls is $2.25 per bowl. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $1.50 per bowl. PRICE (Dollars per bowl) 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 0 Demand P = $2.25 P = $1.50 20 Small Economy's Monthly Demand 60 80 100 120 140 160 180 QUANTITY (Thousands of acai bowls) 40 200 Initial Consumer Surplus (P = $2.25) from the 6th Additional Consumer Surplus (P = $1.50)
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