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Abdullah loves donuts. The table below reflects the value Abdullah places on each donut he eats: Value of first donut $0.60 Value of second donut $0.50 Value of third donut $0.40 Value of fourth donut $0.30 Value of fifth donut $0.20 Value of sixth donut $0.10 a. Use this information to construct Abdullah’s demand curve for donuts. b. If the price of donuts is $0.20, how many donuts will Abdullah buy? c. Show Abdullah’s consumer surplus on your graph. How much consumer surplus would he has at a price of $0.20? d. If the price of donuts rose to $0.40, how many donuts would he purchase now? What would happen to Abdullah’s consumer surplus? Show this change on your
graph.
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