Draw a graph that shows her change in consumer surplus

Reference no: EM131132971

Consumer Compensation. Consider the story of Coca-Cola and the scoreboard in the chapter. Your job is to fully compensate each student for the cost associated with the soft-drink monopoly. Suppose CocaCola increased the price of soft drinks by $0.20 per can and each student consumed 10 soft drinks before the monopoly was granted.

a. Kate continues to buy 10 soft drinks at the higher price. What is the appropriate compensation for her?

b. Elise buys only 4 soft drinks at the higher price. Her demand curve is linear. What is her appropriate compensation? Draw a graph that shows her change in consumer surplus.

Reference no: EM131132971

Questions Cloud

What potential issues or ramifications should you be aware : What type of disciplinary actions, if any, would you take against Newton? What potential issues or ramifications should you be aware of when considering disciplinary actions?

Critical for both local and international audiences : What purposes do visual aids serve? Why are they critical for both local and international audiences? How do you keep your audience engaged?

Management of sundown rent-a-car : Management of Sundown Rent-a-Car has decided that perhaps the cost during the six-month period is not the appropriate cost to minimize because the agency may still be obligated to additional months on some leases after that time.

Industrial revolution and transportation play : What role did the Industrial Revolution and Transportation play in the period of progress in Latin America after 1850 and what were the different aims of social progress and liberalism in Mexico and Argentina between 1850 and 1890?

Draw a graph that shows her change in consumer surplus : Draw a graph that shows her change in consumer surplus.

Describe a group whose members reside in a specific locality : What can describe a social group of any size whose members reside in a specific locality,- share government - have a common cultural and historical heritage?

Analyze economic theory and how used to explain causes crime : From the first e-Activity, analyze economic theory and how it is used to explain the causes of crime. Discuss whether or not you agree with the video-suggested causes of crime. Justify your response with citations and research.

What is the price elasticity of demand : If the spring were owned by a government that applied the marginal principle, what price would it charge?

Political and economic transformations : What major social, political and economic transformations contributed to the ascendance of liberal political theory in europe between 1789-1850

User Account

All Pages