Consider the market for loft houses. The market price of each loft house is $320,000, and each consumer demands no more than one loft house. Suppose that Yakov is the only consumer in the loft house market. Their willingness to pay for a loft house is $560,000. Based on Yakov's willingness to pay, the following graph shows his demand curve for loft houses. Shade the area representing Yakov's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dollars) 640 560 480 400 320 240 160 80 0 0 Yakov's Demand 3 QUANTITY (Loft houses) Market Price 5 Yakov's Consumer Surplus (?)
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- e E L E 11- esc CENGAGE MINDTAP Chapter 07 Homework Consider the market for electric vehicles. The market price of each electric vehicle is $340,000, and each consumer demands no more than one electric vehicle. Suppose that Antonio is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $595,000. Based on Antonio's willingness to pay, the following graph shows his demand curve for electric vehicles. PRICE (Thousands of dollars) Shade the area representing Antonio's consumer surplus using the green rectangle (triangle symbols). 680 595 1 ! 510 425 3:0 255 170 85 0 :0² FI Q A N Antonio's Demand Now, suppose another buyer, Caroline, enters the market for electric vehicles, and her willingness to pay is $425,000. @ 2 GO 2 QUANTITY (Electric vehicles) F2 W S 3 #3 80 F3 E Market Price D $ 4 X C 888 F4 R F Antonio's Consumer Surplus % 5 ng.cengage.com FS T V 6 MacBook Air G (?) F6 Y B & 7 H F7 U N * 8 J DII 1 ( 9 M K ) 0 0 F10 L P Q 90 ABEach rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Gilberto, green (triangle symbols) for Juanita, purple (diamond symbols) for Lorenzo, tan (dash symbols) for Neha, and blue (circle symbols) for Sam. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a tablet at a market price of $120. (Note: If a person will not purchase a tablet at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) 240 Gilberto 210 Juanita Gilberto 180 Lorenzo 150 Juanita Market Price 120 Neha Lorenzo 90 60 Neha Sam 30 7 8. Sam 1 QUANTITY (Tablets) will buy tablets at the given market price, and total Based on the information on the previous graph, you can tell that consumer surplus in this market will be $ PRICE (Dollars per tablet)The following graph shows Andrew's weekly demand for apple pie, represented by the blue line. Point A represents a point along his weekly demand curve. The market price of apple pie is $3.00 per slice, as shown by the horizontal black line. (Part 2) From the previous graph, you can tell that Andrew is willing to pay for his 8th slice of apple pie each week. Because he has to pay only $3.00 per slice, the consumer surplus he gains from the 8th slice of apple pie is Suppose the price of apple pie were to fall to $2.25 per slice. At this lower price, Andrew would receive a consumer surplus of from the 8th slice of apple pie he buys. The following graph shows the weekly market demand for apple pie in a small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of apple pie is $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price…
- Homework (Ch 07) 3. Consumer surplus for a group of consumers W.. The following graph plots the demand curve (blue line) for several consumers in the market for motor scooters in Meade, a small town located in Kansas. The Meade market price of a motor scooter is given by the horizontal black line at $60. → Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Manuel, green (triangle symbols) for Poornima, purple (diamond symbols) for Shen, tan (dash symbols) for Valerie, and blue (circle symbols) for Antonio. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $60. (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) 160 PRICE (Dollars per motor scooter) 3 140 120 100 80 60 40 E с Manuel 4 Poornima FR…The following graph shows Alyssa's weekly demand for pizza, represented by the blue line. Point A represents a point along her weekly demand curve. The market price of pizza is $3.00 per slice, as shown by the horizontal black line. Alyssa's Weekly Demand 7.50 6.75 6.00 5.25 Demand 4.50 А 3.75 Price 3.00 2.25 1.50 0.75 4 6 8 10 12 16 18 QUANTITY (Slices of pizza) for her 8th slice of pizza each week. Because she has to pay only $3.00 From the previous graph, you can tell that Alyssa is willing to pay $ per slice, the consumer surplus she gains from the 8th slice of pizza is $ 20 14 PRICE (Dollars per slice)The following graph shows Alyssa's weekly demand for apple pie, represented by the blue line. Point A represents a point along her weekly demand curve. The market price of apple pie is $1.25 per slice, as shown by the horizontal black line. Alyssa's Weekly Demand 2.50 Demand 2.25 2.00 1.75 1.50 Price 1.25 1.00 0.75 0.50 0.25 0. + 0. 2 4 6. 8. 10 12 14 16 18 QUANTITY (Slices of apple pie) From the previous graph, you can tell that Alyssa is willing to pay $ for her 8th slice of apple pie each week. Because she has to pay only $1.25 per slice, the consumer surplus she gains from the 8th slice of apple pie is $ PRICE (Dollars per slice) 20
- 3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line) for several consumers in the market for motor scooters in Meadville, a small town located in Pennsylvania. The Headville market price of a motor scooter is given by the horizontal black line at $180. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Gilberto, green (triangle symbols) for Juanita, purple (diamond symbols) for Lorenzo, tan (dash symbols) for Neha, and blue (arde symbols) for Sam. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $150 (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette) 8 G 88 PRICE (Doters per motor scooter 8 8 240 8 Giberto Juan Lorenzo Neha Sam 1 QUANTITY (Motor…Consumer surplus is calculated by taking the difference of the price consumers are willing to pay and the price actually paid. When the price is $4, the consumer would buy only two bottles because the value the consumer would get from the first bottle is $7. This implies, the surplus is $3. Similarly for the second bottle, the value the consumer would get from consuming it is $5 where the price the consumer will pay is $4, this implies the surplus is $1. Lastly, for the third bottle the value is $3 and the price is $4 so the price surpasses the value, therefore the consumer will not consumer beyond two bottles. The consumer surplus could be calculated as: Consumer Surplus = (7-4) + (5-4) = 3 + 1 = 2 This means the consumer will buy two bottles. If the price falls to $2, the consumer would only buy three bottles because the value the consumer gets from the first bottle valued at $7 versus the $2 paid implies a consumer…Colorado. The Mead market price of a motor scooter is given by the horizontal black line at $60. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Bob, green (triangle symbols) for Cho, purple (diamond symbols) for Eric, tan (dash symbols) for Ginny, and blue (circle symbols) for Kenji. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $60. (Note: If a person will not purchase a motor scooter at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) ? PRICE (Dollars per motor scooter) 160 140 120 100 80 60 40 20 0 0 1 Bob 2 Cho Eric Ginny Kenji 3 4 5 QUANTITY (Motor scooters) Market Price 6 7 8 Based on the information on the previous graph, you can tell that consumer surplus in this market will be $ Bob Cho Eric Ginny Kenji will buy motor scooters at…
- 2. Individual demand and consumer surplus Consider the market for hyperbaric chambers. The market price of each hyperbaric chamber is $135,000, and each consumer demands no more than one hyperbaric chamber. Suppose that Clancy is the only consumer in the hyperbaric chamber market. Their willingness to pay for a hyperbaric chamber is $270,000. Based on Clancy's willingness to pay, the following graph shows his demand curve for hyperbaric chambers. Shade the area representing Clancy's consumer surplus using the green rectangle (triangle symbols). PRICE (Thousands of dollar) 200 315 228 100 135 O Clancy's Demand Market Price QUANTITY (Hyperbanc chambers) Clancy's Consumer Surplus (?)Joe's demand for spring water can be represented as p = 15 - 0.8Q (where p is measured in $/ gallon and Q is measured in gallons). He recently discovered a spring where water can be obtained free of charge. His consumer surplus from this water is Your Answer: AnswerSuppose that you, Julio, and Yusef constitute the market for CDs. Your demand for CDs is illustrated in the graph to the right (D₁), along with Julio's demand (D₂) and Yusef's demand (D3). Using the line drawing tool, construct the market demand curve for CDs. To do this, you will need to use three line segments labeled Dsegment 1, Dsegment 2, and Dsegment 3- Carefully follow the instructions above, and only draw the required objects. Price of CDs 30 D3 28- 26- 24- 22- 20-92 18+ 16- 14- 12- 10-01 8- 6- 4 2- 0- 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 Quantity of CDs