The following graph shows Valerie’s weekly demand for pizza, represented by the blue line. Point A represents a point along her weekly demand. The market price of pizza is $3.00 per slice, as shown by the horizontal black line.
Valerie’s Weekly Demand
PRICE (Dollars per slice)QUANTITY (Slices of pizza)DemandPriceA
From the previous graph, you can tell that Valerie is willing to pay____for her 8th slice of pizza each week. Since she has to pay only $3.00 per slice, the consumer surplus she gains from the 8th slice of pizza is___.
Suppose the price of pizza were to fall to $2.25 per slice. At this lower price, Valerie would receive a consumer surplus of ____from the 8th slice of pizza she buys.
The following graph shows the weekly market demand for pizza in a small economy.
Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of pizza is $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $2.25 per slice.
Small EconomyAc€?cs Weekly DemandInitial Consumer Surplus (P=$3.00)Additional Consumer Surplus (P=$2.25)
PRICE (Dollars per slice)QUANTITY (Thousands of slices of pizza)DemandP=$3.00P=$2.25593.75, -14.3