Consider the market for yachts. The market price of each yacht is $200,000, and each buyer...

  

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Consider the market for yachts. The market price of each yacht is $200,000, and each buyer demands no more than one yacht. Suppose that Paolo is the only consumer in the yacht market. His willingness to pay for a yacht is $320,000. Based on Paolo's willingness to pay, the following graph shows his demand curve for yachts. Shade the area representing Paolo's consumer surplus using the green rectangle (triangle symbols). (? Paolo's Demand 320 280 Paolo's Consumer Surplus 240 Market Price 200 160 120 80 40 1 2. 3. OUANTITV /Vacktel PRICE (Thousands of dollars) Now, suppose another buyer, Sharon, enters the market for yachts, and her willingness to pay is $240,000. Based on Sharon's and Paolo's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Paolo's consumer surplus using the green rectangle (triangle symbols), and shade Sharon's consumer surplus using the purple rectangle (diamond symbols). Note: Plot your points as a step function in the order in which you would like them connected. Line segments will connect the points automatically. (?) 320 280 Demand Curve 240 Market Price 200 Paolo's Consumer Surplus 160 Sharon's Consumer Surplus 120 80 40 PRICE (Thousands of dollars) Sharon's Consumer Surplus 120 80 40 1. 2. 3 4 QUANTITY (Yachts) Suppose Van is willing to pay a total of $160,000 for a yacht. True or False: Keeping his maximum willingness to pay for a yacht in mind, Van will not buy the yacht because it would be worth less to him than its market price of $200,000. True False Grade It Now Save & Continue Continue without saving PRICE (ThousE Consider the market for yachts. The market price of each yacht is $200,000, and each buyer demands no more than one yacht. Suppose that Paolo is the only consumer in the yacht market. His willingness to pay for a yacht is $320,000. Based on Paolo's willingness to pay, the following graph shows his demand curve for yachts. Shade the area representing Paolo's consumer surplus using the green rectangle (triangle symbols). (? Paolo's Demand 320 280 Paolo's Consumer Surplus 240 Market Price 200 160 120 80 40 1 2. 3. OUANTITV /Vacktel PRICE (Thousands of dollars) Now, suppose another buyer, Sharon, enters the market for yachts, and her willingness to pay is $240,000. Based on Sharon's and Paolo's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Paolo's consumer surplus using the green rectangle (triangle symbols), and shade Sharon's consumer surplus using the purple rectangle (diamond symbols). Note: Plot your points as a step function in the order in which you would like them connected. Line segments will connect the points automatically. (?) 320 280 Demand Curve 240 Market Price 200 Paolo's Consumer Surplus 160 Sharon's Consumer Surplus 120 80 40 PRICE (Thousands of dollars) Sharon's Consumer Surplus 120 80 40 1. 2. 3 4 QUANTITY (Yachts) Suppose Van is willing to pay a total of $160,000 for a yacht. True or False: Keeping his maximum willingness to pay for a yacht in mind, Van will not buy the yacht because it would be worth less to him than its market price of $200,000. True False Grade It Now Save & Continue Continue without saving PRICE (ThousE

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