Final answer:
To draw a demand curve for bottles of vitamins, plot the points at ($10, 44 million) and ($2, 8 million) and connect them with a downward-sloping line, as demanded by the law of demand. Label this line as the 'Demand Curve for Vitamins'. The concept of consumer surplus is represented by the area above the market price and below this curve. The correct option is d.
Step-by-step explanation:
To draw a demand curve for bottles of vitamins, we start by plotting the given points on a graph where the x-axis represents the quantity demanded and the y-axis represents the price. The first point is at a price of $10 with a quantity of 44 million bottles, while the second point is at a price of $2 with a quantity of 8 million bottles.
These points reflect the law of demand, which states that there is an inverse relationship between price and quantity demanded.
Now, connect the two points with a line that slopes downward from left to right. This downward slope represents the typical demand curve, showing that as the price decreases (from $10 to $2), the quantity demanded increases (from 8 million to 44 million). Label this line as the 'Demand Curve for Vitamins'.
The concept of consumer surplus is illustrated by the area above the market price and below the demand curve. Consumer surplus is the difference between what consumers are willing to pay for a good and what they actually pay. In this case, if consumers were willing to pay more than the market price, they receive a consumer surplus. The correct option is d.