Tammy Loves Doughnuts

question 59

Essay

Tammy loves doughnuts.The table shown reflects the value Tammy places on each doughnut she eats:
a.Use this information to construct Tammy's demand curve for doughnuts.
b.If the price of doughnuts is $0.20, how many doughnuts 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 doughnuts rose to $0.40, how many doughnuts would she purchase now? What would happen to Tammy's consumer surplus? Show this change on your graph.

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Definitions:

Black Beans

A type of legume that is dark in color and rich in protein, often used in various cuisines around the world for their nutritional benefits and versatile uses in cooking.

Budget Constraint

The limitations on the consumption choices of an individual or organization due to limited resources or income.

DVD

A digital versatile disc used for storing large amounts of data, including video and audio, in a digital format.

CD

A compact disc used for storing data, including music and software, now largely overtaken by digital storage solutions.