Determine the consumer surplus and the average price per cup, Microeconomics

Suppose the demand curve for a consumer for coffee is:

Q = 6 – 2P,

where Q represents the number of cups per day and P is the price of coffee per cup. 

Question: Sppose the consumer is at coffee shop 2. Coffee shop 2 provides unlimited cups of coffee for the price of $9.00 per day.

- How many cups would she drink a day and how much would she spend a day at coffee shop 2?  Explain your answer and illustrate it on the graph. Hint: Again, I would draw the demand curve and the incremental price of drinking a cup of coffee at the shop to show the number of cups the consumer chooses.

- What is the consumer surplus and the average price per cup?

Posted Date: 3/29/2013 2:58:10 AM | Location : United States







Related Discussions:- Determine the consumer surplus and the average price per cup, Assignment Help, Ask Question on Determine the consumer surplus and the average price per cup, Get Answer, Expert's Help, Determine the consumer surplus and the average price per cup Discussions

Write discussion on Determine the consumer surplus and the average price per cup
Your posts are moderated
Related Questions
Discuss about the evaluation step in analytical frameworks. Evaluations: The fifth step into studying an economic step is to estimate outcomes resulting through the under

Elastic and Inelastic Demand can be understood as follows: Slope and elasticity of demand have an inverse relationship between them. When slope is high elasticity of demand bec

Type of total outlay

1) A) Suppose that several months of data showed the CPI increasing at a 4.5% annual rate due largely to increases in the price of energy and food related commodities following sev

Return on Equity: It's a measure of business profitability equal to net after-tax income divided by average level of shareholders' equity in the business. Sales Tax: A tax im

Problem 1: i) Is Protectionism always beneficial? Discuss. ii) To what extent can a country actually rely on the principle of Comparative advantage before engaging in in

Revenue and Profit Maximization: Whenever a good is produced, the individual firm which has produced incurs costs which are are referred to as private costs and the society in

A control in economics means a steady profit rate that is enhancing. Thus, after one year you could have £1mill profit then the next year £3mill profit etc.

Show that when a plane wave is transmitted through a thin lens of focal length f in the direction parallel to the optical axis of the lens, its converted into a paraboloid wave (th

Calculating Variance (σ) The standard deviations of the 2 jobs are: The standard deviation is used when there are several outcomes instead of only two. * An Examp