Please draw on the graph and label!!! Answer All questions please. Now, suppose another buyer, Megan, enters the market for apartments, and her willingness to pay is $125,000.Based on Megan's and Larry's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circlesymbol). Next, shade Larry's consumer surplus using the green rectangle (triangle symbols), and shade Megan's consumer surplus using the purplerectangle (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.200175Demand Curve150125Larry's Consumer SurplusMarket Price100Megan's Consumer Surplus75502541QUANTITY (Apartments)Suppose Raphael is willing to pay a total of $75,000 for an apartment.True or False: Keeping his maximum willingness to pay for an apartment in mind, Raphael will buy the apartment because it would be worth more tohim than its market price of $100,000.O TrueO Falsehere to searchPRICE (Thousands of dollars)II 2. Individual demand and consumer surplusConsider the market for apartments. The market price of each apartment is $100,000, and each buyer demands no more than one apartment.Suppose that Larry is the only consumer in the apartment market. His willingness to pay for an apartment is $175,000. Based on Larry's willingness topay, the following graph shows his demand curve for apartments.Shade the area representing Larry's consumer surplus using the green rectangle (triangle symbols).200Larry's Demand175Larry's Consumer Surplus150125Market Price100755025PRICE (Thousands of dollars)

Assume that there is a market- market for apartment. The price of each apartment is $100,000.…

d on Megan's and Larry's respective willingness to pay, plot the market demand curve on the following graph using the blue po bol). Next, shade Larry's consumer surplus using the green rectangle (triangle symbols), and shade Megan's consumer surplus angle (diamond symbols). ce: Plot your points as a step function in the order in which you would like them connected. Line segments will connect the points 200 175 Demand Curve 150 125 Larry's Consumer Surplus Market Price 100 Megan's Consumer Surplus 75 50 25 PRICE (Thousands of dollars)

d on Megan's and Larry's respective willingness to pay, plot the market demand curve on the following graph using the blue po bol). Next, shade Larry's consumer surplus using the green rectangle (triangle symbols), and shade Megan's consumer surplus angle (diamond symbols). ce: Plot your points as a step function in the order in which you would like them connected. Line segments will connect the points 200 175 Demand Curve 150 125 Larry's Consumer Surplus Market Price 100 Megan's Consumer Surplus 75 50 25 PRICE (Thousands of dollars)

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 2P

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Question

Please draw on the graph and label!!! Answer All questions please.

Now, suppose another buyer, Megan, enters the market for apartments, and her willingness to pay is $125,000.
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.
200
175
Demand Curve
150
125
Larry's Consumer Surplus
Market Price
100
Megan's Consumer Surplus
75
50
25
4
1
QUANTITY (Apartments)
Suppose Raphael is willing to pay a total of $75,000 for an apartment.
True or False: Keeping his maximum willingness to pay for an apartment in mind, Raphael will buy the apartment because it would be worth more to
him than its market price of $100,000.
O True
O False
here to search
PRICE (Thousands of dollars)
II

2. Individual demand and consumer surplus
Consider the market for apartments. The market price of each apartment is $100,000, and each buyer demands no more than one apartment.
Suppose that Larry is the only consumer in the apartment market. His willingness to pay for an apartment is $175,000. Based on Larry's willingness to
pay, the following graph shows his demand curve for apartments.
Shade the area representing Larry's consumer surplus using the green rectangle (triangle symbols).
200
Larry's Demand
175
Larry's Consumer Surplus
150
125
Market Price
100
75
50
25
PRICE (Thousands of dollars)

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