B. The figure below shows the market of physician visit. Current market price foreach physician visit is $5.Price ($)98PMKT = $5Number of PhysicianVisits (Q)0 1 2 3 41) According to the figure, what is the optimal number of physician visits whichcan maximize consumer surplus?2) Calculate total consumer surplus when the number of physician visitsreaches the optimal amount.3) When market price rises from $5 to $6, how will the optimal number ofphysician visits and consumer surplus change?765 1. Utility and Consumer SurplusA. Use the figure below to fill in the total utility and marginal utility of medicalcare in the table. In this example, is the marginal utility of health careincreasing or decreasing? What are some reasons why this might be thecase (briefly explain; approximate 3 sentences)?Health (H)Utility1615131034 Medical care (q)12Units of Medical Care01Total UtilityMarginal Utility234Briefly explain: Conceptually, does the marginal utility scheduled above reflect your owndemand for going to the dentist to get a check-up?

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B. The figure below shows the market of physician visit. Current market price for each physician visit is $5. Price (S) 9 PMKT = 55 Number of Physician Visits (Q) 012 1) According to the figure, what is the optimal number of physician visits which can maximize consumer surplus? 2) Calculate total consumer surplus when the number of physician visits reaches the optimal amount. 3) When market price rises from $5 to $6, how will the optimal number of physician visits and consumer surplus change? 00 8 7 65

B. The figure below shows the market of physician visit. Current market price for each physician visit is $5. Price (S) 9 PMKT = 55 Number of Physician Visits (Q) 012 1) According to the figure, what is the optimal number of physician visits which can maximize consumer surplus? 2) Calculate total consumer surplus when the number of physician visits reaches the optimal amount. 3) When market price rises from $5 to $6, how will the optimal number of physician visits and consumer surplus change? 00 8 7 65

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 13PA

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