# donuts

Abdullah loves donuts. The table below reflects the value Abdullah places on each donut he eats: Value of first donut\$0.60Value of second donut\$0.50Value of third donut\$0.40Value of fourth donut\$0.30Value of fifth donut\$0.20Value of sixth donut\$0.10a.       Use this information to construct Abdullah’s demand curve for donuts.b.       If the price of donuts is \$0.20, how many donuts will Abdullah buy?c.       Show Abdullah’s consumer surplus on your graph. How much consumer surplus would he has at a price of \$0.20?d.       If the price of donuts rose to \$0.40, how many donuts would he purchase now? What would happen to Abdullah’s consumer surplus? Show this change on your graph. Question Two: Assume that Japan and Korea can switch between producing cars and producing airplanes at a constant rate. Hours Neededto Make 1Quantity Producedin 2400 Hours           Car   Airplane       Cars AirplanesJapan301508016Korea5015048161-      What is Japan’s opportunity cost of one car?2-      Suppose Korea decides to increase its production of cars by 18. What is the opportunity cost of this decision?3-       3- In what product Japan has an absolute advantage? and in what product Korea has an absolute advantage ?

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