Assignment: Let p denote price and q denote quantity demanded of wild salmon.
Q1) Using the data provided in table 1, plot the relationship between the quantity of wild salmon and the marginal willingness to pay for John. Calculate the slope of this relationship.
Table: John's marginal willingness to pay for wild salmon
q p
0 32
1 24
2 16
3 8
4 0
Q2) Mary's demand for wild salmon can be represented by: p = 40 --- 4q. Plot the demand curve on the same graph as John's demand.
Q3) Suppose the market price of wild salmon is 16. Label and calculate the quantity John will consume and his consumer surplus at this price. Do the same for Mary.
Q4) On a new graph, plot the aggregate demand curve for wild salmon.