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

Essay

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