5. Consumer surplus for an individual and a market The following graph shows Kevin's irlreekl'lr demand for apple pie, represented by the blue line. Point A represents a point along his weekly.r demand. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. Kevin's Weekly Demand 7.50 8.75 8.00 5.25 Demand 4.50 A 3.75 PRICE (Dollars per slice) Price 3.00 2.25 1.50 0.75 2 4 10 12 14 16 18 20 QUANTITY (Slices of apple pie)From the previous graph, you can tell that Kevin is willing to pai,r _for his 8th slice of apple pie each week. Since he has to pay only $3.00 per slice. the consumer surplus he gains from the 8th slice of apple pie is . Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price. Kevin would receive a consumer surplus of- from the 8th slice of apple pie he buys. The following graph shows the weeklyr market demand for apple pie in a small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of apple pie is $3.00 per slice. Then, use the green point (triangle symbol) tp shade the area representing additional consumer surplus when the price falls to $2.25 perslic'e. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of apple pie is $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $2.25 per slice. Small Economy's Weekly Demand 7.50 O 8.75 Initial Consumer Surplus (P=$3.00) 6.00 Demand A 5.25 4.50 Additional Consumer Surplus (P=$2.25) 3.75 PRICE (Dollars per slice) P=$3.00 3.00 2.25 P=$2.25 1.50 0.75 0 20 40 60 80 100 120 140 180 180 200 QUANTITY (Thousands of slices of apple pie)