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
what does General Equilibrium in consumption means?

Illustrate the Economic Growth Up until 1800 growth rates of human populations were glacial. Population growth between 5000 B.C. and 1800 averaged less than one-tenth of a perc

In neoclassical economics, equilibrium exists when supply equals demand for a particular commodity. General equilibrium is a special (purely hypothetical) condition in which every

ffhgfhfh

DIMENSIONS OF UNEMPLOYMENT: What is the level of unemployment in the country? According to the 1999-2000 Survey of NSSO, the number of unemployed has increased from 20.13 mill


4) The prevention of major swings in economic activity can be handled most easily by the A. household sector B. business sector C. financial sector D. government sector Explain

CROP PATTERNS: Analysis of crop patterns in India should relate to the following aspects:  a) The relative significance of different crops/crop groups in the overall area u

The goal is to replicate a real life product development and familiarize students with the invent process of a system, component, or process to meet desired wants within realistic

when does market equilibrium occur?