Exhibit 6-18 on a Normal Day, Emily Mapai's Demand

Exhibit 6-18 On a normal day, Emily Mapai's demand curve for a cup of hot chocolate is initially shown as D in Exhibit 6-18.On a day when the high temperature does not get above zero degrees, her demand curve increases to D'.At a price P for a cup of hot chocolate, Emily's consumer surplus on a freezing day

A) cannot be determined without calculating an exact marginal valuation
B) increases a great deal over her consumer surplus on a normal day
C) will vary depending on whether hot chocolate is a normal or an inferior good
D) increases only if her demand curve is unit-elastic
E) decreases a great deal over her consumer surplus on a normal day

Correct Answer:

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