Draw and label demand curve for a cup of coffee for consumer, Microeconomics

Assignment Help:

Suppose the demand curve for a consumer for coffee is:

Q = 6 - 2P,

where Q represents the number of cups per day and P is the price of coffee per cup. 

1.  Suppose the consumer is at coffee shop 1. Coffee shop 1 charges $2.00 per cup. 

- Draw and label the demand curve for a cup of coffee for the consumer (please do not forget to specify the intercept of the demand curve for each of the axes).

- How many cups would she drink a day and how much would she spend a day at coffee shop 1?  Explain your answer and illustrate it on the graph. Hint: I would draw the incremental price of drinking a cup of coffee at the shop to show the number of cups the consumer chooses.

- What is the consumer surplus and the average price per cup?


Related Discussions:- Draw and label demand curve for a cup of coffee for consumer

Calculate the elasticity of pollution demand, 1.  The marginal benefit (dem...

1.  The marginal benefit (demand) curve for pollution for an industry is P=100-4*Q, where Q is emissions in tons.  The current emissions tax (price) for pollution is $40/ton.  Regu

Economics, Assume that a persion lives for three equal periods: Youth, Earl...

Assume that a persion lives for three equal periods: Youth, Early Adulthood and Late Adulthood. The person dies after later adulthood period ends. If one invests $200 in educatio

Sample survey and test marketing, Sample Survey and Test Marketing: Under...

Sample Survey and Test Marketing: Under this method some representative households are selected on random basis as samples and their opinion is taken as the generalized opinio

Demand function is homogeneous of degree zero, Demand Function is Homogeneo...

Demand Function is Homogeneous of Degree Zero: Mathematical Presentation  we will show that demand function is homogeneous of degree zero in prices and money income. In o

Surplus, Surplus The surplus is a condition under that supply for a goo...

Surplus The surplus is a condition under that supply for a good or service is in excess of the demand for that good or service. When this happens, there is commonly a reduction

Nature of expectations in keynes' theory, Nature of Expectations in Keynes'...

Nature of Expectations in Keynes' Theory : The above discussion on the nature of expectations in Keynes' theory may be summarised as follows: 1) In forming long-term expec

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd