Tammy Loves Donuts AUse This Information to Construct Tammy's Demand Curve for Donuts

Essay

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