Tammy Loves Croissants ​
A Use This Information to Construct Tammy's Demand Curve for Places

Essay

Tammy loves croissants. The table shown reflects the value Tammy places on each croissants she eats:
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$\begin{array}{|l|l|}\hline \text { Value of first croissant } & € 0.60 \\\hline \text { Value of second croissant } & € 0.50 \\\hline \text { Value of third croissant } & € 0.40 \\\hline \text { Value of fourth croissant } & € 0.30 \\\hline \text { Value of fifth croissant } & € 0.20 \\\hline \text { Value of sixth croissant } & € 0.10 \\\hline\end{array}$
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a. Use this information to construct Tammy's demand curve for croissants.
b. If the price of croissants is €0.20, how many croissants 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 croissants rose to €0.40, how many croissants would she purchase now? What would happen to Tammy's consumer surplus? Show this change on your graph.