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 ?

Assume that Raymond has $ 37.00 to spend on pretzels and beer. The price of pretzels is $3.00 and the price of beer is $5.00. Marginal utilities for each good are given below.     Units               MU P              MU P / P P                 MU B             MU B / P B   1st                   18                    6                                40                    8 2nd                  15                    5                                30                    6 3rd                   12                    4                                25                    5 4th                   9                     3                                 20                    4 5th                   6                     2                                 15                    3 6th                   3                     1                                  5                     1 What Quantity of pretzels will Raymond purchase?

O $60 $0.50 An individual allocates $120 a month for spending on coffee and tea at their workplace. Using the budget constraint appearing above, the price of tea is: $1.50 60 $2 80 Tea

Refer to the graph below. Assume that the initial equilibrium in the market for bus rides is point A (30 rides per week). The price of bus rides increases and the equilibrium shifts to point B (20 rides per week). The income effect of the change in consumer behavior is the $ of other consumption 45 40 35 30 25 20 15 10 5 T T T T T T L B C A 5 10 15 20 25; 30 35 40 45 26 # of bus rides per week decrease of consumption by 4 decrease of consumption by 6 increase of consumption by 6