The market price for coffee is $2.25 per cup. Austin is willing to pay $5.00 per cup, Colin is willing to pay $4.00 per cup, Lucy is willing to pay $3.00 per cup, and Ike is willing to pay $2.00 per cup. Construct a graph showing the consumer surplus for
each cup of coffee purchased. How many cups of coffee will be purchased? What is the value of the consumer surplus each of the four consumers receives from their coffee purchases?
What will be an ideal response?
3 cups of coffee will be purchased. Austin's consumer surplus is $2.75. Colin's consumer surplus is $1.75. Lucy's consumer surplus is $0.75. Ike receives no consumer surplus since he will not be willing to purchase a cup of coffee.
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What will be an ideal response?