Question: Please answer question 2 from the first two pictures and question 8 from the last picture. Thanks in advance! 2. Individual demand and consumer surplus
Please answer question 2 from the first two pictures and question 8 from the last picture. Thanks in advance!
2. Individual demand and consumer surplus Consider the market for yachts. The market price of each yacht is $135,000, and each buyer demands no more than one yacht. Suppose that Larry is the only consumer in the yacht market. His willingness to pay for a yacht is $270,000. Based on Larry's willingness to pay, the following graph shows his demand curve for yachts. Shade the area representing Larry's consumer surplus using the green rectangle (triangle symbols). Larry's Consumer Surplus Larry's Demand PRICE (Thousands of dollars) Market Price QUANTITY (Yachts) Now, suppose another buyer, Megan, enters the market for yachts, and her willingness to pay is $225,000. Based on Megan's and Larry's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Larry's consumer surplus using the green rectangle (triangle symbols), and shade Megan'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. Demand Curve Larry's Consumer Surplus PRICE (Thousands of dollars) Market Price Consumer Surplus QUANTITY (Yachts) Suppose Raphael is willing to pay a total of $90,000 for a yacht. True or Falset Keeping his maximum willingness to pay for a yacht in mind, Raphael will buy the yacht because it would be worth more to him than its market price of $135,000 True O False 8. Total economic surplus The following diagram shows supply and demand in the market for laptops. Use the black point (plus symbol) to indicate the equilibrium price and quantity of laptops. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. Demand Equibrium PRICE Dolars per laptop) Producer Surplus Supply 25 50 225 250 75 100 125 150 175 200 QUANTITY (Millions of laptops) Total surplus in this market is s million


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