2 Tammy Loves Donuts The Table Shown Reflects The Value Tammy Places On Each Donut She Eats Value Of First Donut 0 6 1 (72.01 KiB) Viewed 137 times
2. Tammy loves donuts. The table shown reflects the value Tammy places on each donut she eats: VALUE OF FIRST DONUT $0.60 VALUE OF SECOND DONUT $0.50 VALUE OF THIRD DONUT $0.40 VALUE OF FOURTH DONUT $0.30 VALUE OF FIFTH DONUT $0.20 VALUE OF SIXTH DONUT $0.10
a. c. Use this information to construct Tammy's demand curve for donuts. b. If the price of donuts is $0.20, how many donuts will Tammy buy? Show Tammy's consumer surplus on your graph. How much consumer surplus would she have at a price of $0.20? d. If the price of donuts rose to $0.40, how many donuts would she purchase now? What would happen to Tammy's consumer surplus? Show this change on your graph.
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