Suppose the price per movie was $7 instead of $5. She would purchase only 2 tapes, and would enjoy far less consumer surplus than if tapes were $5.

    On the graph to the right, the consumer surplus she enjoys at a price of $7 is shown as the green area. The consumer surplus she would have enjoyed if the price were $5 is the green + magenta + yellow areas. The higher price reduces her consumer surplus by an amount equal to the magenta + yellow areas. Her total expenditure on tapes when the price is $7 is represented by the red + magenta areas.

Her total consumer surplus now is:
    CS = 1/2 x 2 x 2 = $2

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