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After her great success making pies with Johnny Depp in Sweeney Todd, your friend Helen B. Carter has opened a bakery. She has done some market research and finds that your neighbors value cheesecakes according to the following schedule
Cheesecake
Marginal Value
1
$30.00
2
$27.00
3
$24.30
4
$21.87
5
$19.68
6
$17.71
7
$15.94
8
$14.35
a. Graph the community's demand curve for cheesecakes assuming that there are 100 identical people. Does the demand curve have a positive or negative slope? Why?
b. How many cheesecakes will she sell at $17.71? How many at $9.41?
c. What will happen if a new doctor comes to town and tells everyone to that cheesecake is good for you? What will happen if she changes her recipe and her cheesecakes no longer taste as good?
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