1. Tammy loves donuts. B. If the price of donuts is $0.20, how many donuts will Tammy buy?
1. Tammy loves donuts. B. If the price of donuts is $0.20, how many donuts will Tammy buy? At a price of $0.20, Tammy would buy 5 donuts. C. Show Tammy”s consumer surplus on your graph. How much consumer surplus would she have at a price of $0.20? The figure to the left shows Tammy”s consumer surplus. At a price of $0.20, Tammy”s consumer surplus would be $1.00. 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. If the price of donuts rose to $0.40, Tammy”s consumer surplus would fall to $0.30 and she would purchase only 3 donuts. A. 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? C. 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 woul
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