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Unformatted text preview: compare the respective values of marginal utility per dollar. [Of course, I always maximize utility.] 12. (10 pts) For the demand curve shown, find the total amount of consumer surplus that results in the ice cream market if ice cream sells for $2 per pint (and draw on graph ). Find the total amount of consumer surplus if ice cream sells for $1 per pint and the change in consumer surplus (and draw both on graph ). Answer : If ice cream sells for $2 per pint, consumer surplus is (1/2)(6,000 pints/ month) ($3/pint) = $18,000/month. If ice cream sells for $1 per pint, consumer surplus is (1/2)(8,000 pints/month) ($4/pint) = $32,000/yr. Consumer surplus has risen by $14,000/month....
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- Spring '08