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

Evaluate the demand function, Lab Exercise 1. Taco Del Mar has completed a ...

Lab Exercise 1. Taco Del Mar has completed a study of weekly demand for its tacos in Washington State's regional markets.  The study developed the following demand function: Q =

Exchange rate, if a country is managing its exchange rate what will do to c...

if a country is managing its exchange rate what will do to counteract the effect of stock market bubble in this country? explain what central bank will do and show in supply and de

Economics of exhaustible resources, Normal 0 false false fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Economies of common services, Economies of Common Services: Through th...

Economies of Common Services: Through the concentration of firms in a particular industry in a given geographical location, the firms may enjoy certain commonservices.These

Profit margin, Profit Margin A measure of organization performance, pro...

Profit Margin A measure of organization performance, profit margins measure the percentage return an organization is earning over the cost of production of the items sold.

Definition of labour force, Q. Definition of labour force? Labour Force...

Q. Definition of labour force? Labour Force:Total population of working-age people who are willing and able to work and who thus have ‘entered' labour market. Labour force incl

ECO 204 Final Paper, Review the following information pertaining to the pot...

Review the following information pertaining to the potato chip industry and answer the questions below in a five to six double spaced page paper (not including title and reference

Ppc, how to define or interpret ppc curve

how to define or interpret ppc curve

Cost minimizing input choice, The Cost Minimizing Input Choice - Assump...

The Cost Minimizing Input Choice - Assumptions Two Inputs: Labor (L) & capital (K) Price of labor: wage rate (w) The capital price - R = depreciation ra

Demand analysis, all information about demand analysis

all information about demand analysis

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