Four after college friends all lost their computers in a dorm theft Drew forgot to lock the door. Now they are each considering buying a netbook. The table contains the maximum prices each would be willing to pay. The lowest price they can find is $150. Student Felix Lauren Drew Oscar Willingness to pay $500 $400 $300 $100 On the graph, move the price line from $0 to the market price for netbooks. Then highlight each person's consumer surplus (CS) by moving the line segments assigned to each buyer. Place one segment at the top of the consumer surplus region for that person, and the other segment at the bottom. If a buyer does not have a consumer surplus at all, leave that person's line segments where they are. What is the total consumer surplus? Price ($) 600 550 500 450 400 350- 300 250- 200 150 100 50- Felix Felix Lauren Lauren Drew Drew Oscar Oscar Price 0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 Quantity of netbooks

Four after college friends all lost their computers in a dorm theft Drew forgot to lock the door. Now they are each considering buying a netbook. The table contains the maximum prices each would be willing to pay. The lowest price they can find is $150. Student Felix Lauren Drew Oscar Willingness to pay $500 $400 $300 $100 On the graph, move the price line from $0 to the market price for netbooks. Then highlight each person's consumer surplus (CS) by moving the line segments assigned to each buyer. Place one segment at the top of the consumer surplus region for that person, and the other segment at the bottom. If a buyer does not have a consumer surplus at all, leave that person's line segments where they are. What is the total consumer surplus? Price ($) 600 550 500 450 400 350- 300 250- 200 150 100 50- Felix Felix Lauren Lauren Drew Drew Oscar Oscar Price 0 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0 6.5 7.0 Quantity of netbooks

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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