Question

Johnathon's household frequently purchases tomatoes from the local market. His demand for tomatoes is:

Qd^J (p)=15-3p

A) When Jonathan went to the market last week the price of 1 tomato was $6. This week the price of 1 tomato is $2.

What is Johnathans original and new consumer surplus?

What is the change in consumer surplus?

B) Johnathan lives with his sister, who also ears tomatoes. She has the following demand function:

Qd^s (p)=24-3p

If Jonathan and his sister are the only members of the household who eat tomatoes what is the household demander tomatoes? (Same as market demand)

C) Graph the household demand for tomatoes.

Answer 1

Jo mathan's demand : Qat= 15-3p MD Ini tidly price of bonito. (46=p). Od = 15-3 p = 15-36]=-B.co. So, Janethan ako.will not purchase any to mito. so, consumer surplus=o] ... (1) new price of tomto ($2=p) ad = 15-3p = 15-3(2) = 9 Consumer surplus is Area above the price lined below the demund Price 1 une. - Consumer shoplus Vi b o ementity new Consumer surplus = 1 Aree of a AEF=1 (AF XFE) -1 (5-219) = 27 - 13.5 . change in consumer surpless now consimer surplos- old consumer Surplus = 13.5 -0. ..=1355 B) Sister's demand for potatoes i cd= 24-3p. let household demold be ca. Then a= dat ca 15-3 p + 24-3p = 39 -6p [0=39-bp ] (Household demand)

Graph of household demand Q = 39-6p. At ipao Q=39 At Q=0; p= 34 13 = 6.5 P= 6.5 . 2 Price a y Cuantity of tomita