m &3 3 & Aplia: . M = The following graph shows Neha's weekly demand for chai tea, represented by the blue line. Point A represents a point along her weekly demand. The market price of chai tea is $3.00 per cup, as shown by the horizontal black line. @ Neha's Weekly Demand 750 675 600 Demand Price PRICE (Dollars per cup) o 2 4 6 8 10 12 14 16 18 20 QUANTITY (Cups of chai tea) From the previous graph, you can tell that Neha is willing to pay for her 8th cup of chai tea each week. Since she has to pay only $3.00 per cup, the consumer surplus she gains from the 8th cup of chai tea is Suppose the price of chai tea were to fall to $2.25 per cup. At this lower price, Neha would receive a consumer surplus of & from the 8th cup of chai tea she buys. The following graph shows the weekly market demand for chai tea in a small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of chai tea is $3.00 per cup. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $2.25 per cup. @ Small Economy's Weekly Demand 7.50