The figure represents a demand function with a fixed market price denoted by its corresponding point on the demand graph. Calculate the value of and write a sentence of interpretation for each of the following.
q billion
cards
14
12
10
8
D
(1.5, 4.7)
Area = 6.03
p dollars
per card
0
1
2
3 4
5
Pmax??
(a) Consumer expenditure
$ 4.7
X billion
The consumer expenditure, or the total amount spent on cards to purchase
(b) Consumer surplus
$ 7.05
X billion
The consumer surplus, or the ---Select---
(c) Consumer willingness and ability to spend
billion
billion cards at $
per card, is $
billion.
? what consumers are willing and able to spend for 4.7 billion cards and the amount they actually spend on that quantity, is $
billion.
The total amount of money consumers have available and are willing to pay for 4.7 billion cards is $
billion.