Discuss how to calculate the consumer surplus


Problem

The U.S. Department of Agriculture's (USDA's) minimum general recommendation is five servings of fruits and vegetables a day. Jetter et al. (2004) estimated that, if consumers followed that advice, the equilibrium price and quantity of most fruits and vegetables would increase substantially. For example, the price of salad would rise 7.2%, output would increase 3.5%, and growers' revenues would jump 7.3% (presumably, health benefits would occur too). Use a diagram to illustrate as many of these effects as possible and to show how consumer surplus and producer surplus change. Discuss how to calculate the consumer surplus (given that the USDA's recommendation shifts consumers' tastes or behavior)

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Discuss how to calculate the consumer surplus
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