Answered: ? 240 Рaolo Sharon Paolo 180 Van 150…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following graph shows the demand curve for a group of consumers in the U.S. market (blue line) for tablets. The market price of a tablet is shown by the black horizontal line at $120.

Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Paolo, green (triangle symbols) for Sharon, purple (diamond symbols) for Van, tan (dash symbols) for Amy, and blue (circle symbols) for Carlos. 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.)

Based on the information on the previous graph, you can tell that____will buy tablets at the given market price, and total consumer surplus in this market will be___

Suppose the market price of a tablet decreases to $60.

Part 2

On the following graph, use the rectangles once again to shade the areas representing consumer surplus for each person who is willing and able to purchase a tablet at the new market price: orange (square symbols) for Paolo, green (triangle symbols) for Sharon, purple (diamond symbols) for Van, tan (dash symbols) for Amy, and blue (circle symbols) for Carlos. (Note: If a person will not purchase a tablet at the new market price, indicate this by leaving his or her rectangle in its original position on the palette.)

Based on the information in the second graph, when the market price of a tablet decreases to $60, the number of consumers willing to buy a tablet to , and total consumer surplus

?
240
Рaolo
Sharon
Paolo
180
Van
150
Sharon
Market Price
120
Amy
Van
90
80
Amy
Carlos
30
0
Carlos
0
2
3
4
F
7
QUANTITY (Tablets)
PRCE (Dollars per tablet)
210

240
Paolo
210
Sharon
Рaolo
180
Van
150
Sharon
120
Amy
Van
90
Market Price
80
Amy
Carlos
30
0
0
1
2
3
5
6
7
8
Carlos
QUANTITY (Tablets)
PRICE (Dollars per tablet)

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