The following graph plots Kyoko's monthly demand curve (blue line) for burrito bowls. The point denoted by A gives a point along her monthly demand curve. The market price of burrito bowls is $2.25 per bowl, given by the horizontal black line.
PRIZE (Dolars per bowt
7.50
4.75
4.00
5.25
450
Demand
1.75
3.00
Price
2.25
PRIZE (Dollars per bowt
150
0.75
Rynnnnnthly
10 12 14
20
QUANTITY (burrito bowls)
From the previous graph, you can tell that Kyoko is willing to pay $
per bowl, the consumer surplus she gains from the 6th burrito bowl is $
for her 6th burrito bowl each week. Because she has to pay only $2.25
Suppose the price of burrito bowls were to fall to $1.50 per bowl. At this lower price, Kyoko would receive a consumer surplus of $
6th burrito bowl she buys.
The following graph plots the monthly market demand curve (blue line) for burrito bowls in a hypothetical small economy.
from the
Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of burrito bowls is $2.25 per bowl. Then,
use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $1.50 per bowl.
7.50
4.75
6.00
5.25
Intal Consumer Surplus ($2.25)
4.50
Additional Consumer Surplus(1-$1.50)
Demand
1.75
3.00
11-$2.25
2.25
1.50
P-$1.50
0.75
20
40
00 100 120 140 100 100 200
QUANTITY (Thousands of burrito bows)