suppose the consumer is at coffee shop 2 coffee, Managerial Accounting

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suppose the consumer is at coffee shop 2 coffee

Suppose the consumer is at coffee shop 2. Coffee shop 2 provides unlimited cups of coffee for the price of $9.00 per day.

- How many cups would she drink a day and how much would she spend a day at coffee shop 2? Explain your answer and illustrate it on the graph. Hint: Again, I would draw the demand curve and the incremental price of drinking a cup of coffee at the shop to show the number of cups the consumer chooses.

- What is the consumer surplus and the average price per cup?

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