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Aplia Homework: Consumer Choice and Market Efciency 6. Consumer surplus and price changes The following graph shows the demand curve for a group of students in the market for graphing calculators. Each student wants only one calculator. Assume that if an individual has a willingness to pay just equal to the market price, he or she will make the purchase. Kenji 480 400 320 PRICE (Dollars per calculator) 80 0 1 2 3 4 5 6 QUANTITY (Calculator) Region A (the green shaded area) represents total consumer surplus when the market price is $ while region B (the grey shaded area) represents when the market price the change in total consumer surplus Complete t atements are true or false based on the information provided on the previous graph. the total consumer surplusRegion A (the green shaded area) represents total consumer surplus when the market price is , while region B (the grey shaded area) represents V when the market price V . Complete the following table by indicating which statements are true or false has on the previous graph. changes from $320 to $240 m -- O @ changes from $240 to $160 Consumer surplus is smaller when the price is $240 than when it is $320. is $240 Assuming each student receives a positive surplus, Lucia will always receive m- Complete the following table by indicating which statements are true or false based on the information provided on the previous graph. Statement True False Consumer surplus is smaller when the price is $240 than when it is $320. O O Assuming each student receives a positive surplus, Lucia will always receive more consumer surplus than Paolo. O O There are fewer students buying calculators in this market when the market price is $240 than when it is $320. O O In order for Van to earn a consumer surplus of exactly $40 from buying a graphing calculator, the market price needs to be $