Draw and label demand curve for a cup of coffee for consumer, 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. 

1.  Suppose the consumer is at coffee shop 1. Coffee shop 1 charges $2.00 per cup. 

- Draw and label the demand curve for a cup of coffee for the consumer (please do not forget to specify the intercept of the demand curve for each of the axes).

- How many cups would she drink a day and how much would she spend a day at coffee shop 1?  Explain your answer and illustrate it on the graph. Hint: I would draw 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 2:56:48 AM | Location : United States







Related Discussions:- Draw and label demand curve for a cup of coffee for consumer, Assignment Help, Ask Question on Draw and label demand curve for a cup of coffee for consumer, Get Answer, Expert's Help, Draw and label demand curve for a cup of coffee for consumer Discussions

Write discussion on Draw and label demand curve for a cup of coffee for consumer
Your posts are moderated
Related Questions
1. Assume that the market for wheat is perfectly competitive. Suppose the demand curve for wheat is given by: QD = 200 – 2P where QD is the quantity demanded, in bushels, and P i

Question: (a) With reference to the characteristics of market structure, describe why the market for powdered milk in Mauritius is an appropriate example of monopolistic compe


Revise business plans to incorporate appropriate changes.

Q. Explain about Real Wages? Real Wages:Value of wages, adjusted for level of consumer prices. If nominal value of wages is growing faster than consumer prices, then real wages

Explain why goods provided by natural monopolies are often publicly owned. It would seem that most normal monopolies come with high MSB and also that society has deemed these g

This is a very common methods of forecasting demand. Under this methods a relationship is established between quantity demanded( dependent variable) and independent variables such

relationship between total utilities and marginal utilities

different types of production funtion and curve given by different economist

#queUse a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labor:(a) an increase in immigration (b) more wome