Now, suppose another buyer, Yvette, enters the market for apartments, and her willingness to pay is $225,000.Based on Yvette's and Sean's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circlesymbol). Next, shade Sean's consumer surplus using the green rectangle (triangle symbols), and shade Yvette's consumer surplus using thepurple 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 thepoints automatically.PRICE (Thousands of dollars)360315270225180135450023QUANTITY (Apartments)TrueMarket PriceFalse45Suppose Bob is willing to pay a total of $135,000 for an apartment.Demand CurveSean's Consumer SurplusYvette's Consumer SurplusTrue or False: Keeping his maximum willingness to pay for an apartment in mind, Bob will not buy the apartment because it wouldbe worth less to him than its market price of $180,000.(?) Consider the market for apartments. The market price of each apartment is $180,000, and each buyer demands no more thanone apartment.Suppose that Sean is the only consumer in the apartment market. His willingness to pay for an apartment is $315,000. Based onSean's willingness to pay, the following graph shows his demand curve for apartments.Shade the area representing Sean's consumer surplus using the green rectangle (triangle symbols).?PRICE (Thousands of dollars)3603152702251801354501Sean's Demand23QUANTITY (Apartments)Market PriceSean's Consumer SurplusNow, suppose another buyer, Yvette, enters the market for apartments, and her willingness to pay is $225,000.Based on Yvette's and Sean's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circlesymbol). Next, shade Sean's consumer surplus using the green rectangle (triangle symbols), and shade Yvette's consumer surplus using thepurple 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 thepoints automatically.

The consumer would buy a good if his willingness to pay is greater than the market price. The…

Now, suppose another buyer, Yvette, enters the market for apartments, and her willingness to pay is $225,000. Based on Yvette's and Sean's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Sean's consumer surplus using the green rectangle (triangle symbols), and shade Yvette'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. PRICE (Thousands of dollars) 360 315 270 225 180 135 45 0 0 2 3 QUANTITY (Apartments) Market Price True False Demand Curve || Sean's Consumer Surplus Suppose Bob is willing to pay a total of $135,000 for an apartment. Yvette's Consumer Surplus True or False: Keeping his maximum willingness to pay for an apartment in mind, Bob will not buy the apartment because it would be worth less to him than its market price of $180,000.

Now, suppose another buyer, Yvette, enters the market for apartments, and her willingness to pay is $225,000. Based on Yvette's and Sean's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Sean's consumer surplus using the green rectangle (triangle symbols), and shade Yvette'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. PRICE (Thousands of dollars) 360 315 270 225 180 135 45 0 0 2 3 QUANTITY (Apartments) Market Price True False Demand Curve || Sean's Consumer Surplus Suppose Bob is willing to pay a total of $135,000 for an apartment. Yvette's Consumer Surplus True or False: Keeping his maximum willingness to pay for an apartment in mind, Bob will not buy the apartment because it would be worth less to him than its market price of $180,000.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 15PAE

See similar textbooks

Similar questions

4. Consumer surplus for an individual and a market The following graph shows Becky's weekly demand for cheesecake, represented by the blue line. Point A represents a point along her weekly demand curve. The market price of cheesecake is $3.00 per slice, as shown by the horizontal black line. PRICE (Dollars per slice) 7.50 6.75 6.00 + 5.25 Demand 4.50 + 3.75 3.00 2.25 + 1.50 + 0.75 + 0 0 Price 2 Becky's Weekly Demand P 4 6 8 10 12 14 QUANTITY (Slices of cheesecake) 16 18 20 ? From the previous graph, you can tell that Becky is willing to pay for her 8th slice of cheesecake each week. Because she has to pay only $3.00 per slice, the consumer surplus she gains from the 8th slice of cheesecake is $ Suppose the price of cheesecake were to fall to $2.25 per slice. At this lower price, Becky would receive a consumer surplus of S 8th slice of cheesecake she buys. from the
Suppose Yvette just sat down to enjoy the Double Stack burger that she purchased for $1.00. Her friend, Sean, would also like a Double Stack burger, but he strongly dislikes standing in line. Sean offers to buy Yvette's Double Stack rather than wait in line himself and pay $1.00. The following table shows some hypothetical offers Sean might make for Yvette's burger. First, compute the consumer surplus Yvette gets from buying the burger for $1.00, refusing Sean's offers, and eating the burger. Enter these amounts in the second column of the following table. Next, compute the consumer surplus she gets from buying the first burger at $1.00, selling it to Sean at each price listed, purchasing another burger for $1.00, and consuming it. Enter these amounts in the third column of the table. Again, assume that Yvette's cost of waiting in line for a burger is zero. Note: If Yvette is willing to sell her burger to Sean while at the Wendy's restaurant, she would purchase another burger…
Assume the price of a particular paint brush is $3.50. Denise purchases the paint brush for $3.50 but was wiling to pay $5.00. Ted purchases the paint brush for $3.50 but was willing to pay $4.00. What is the total consumer surplus for Denise and Ted? Group of answer choices $2.00 $4.00 $5.00 $3.55 $1.50
Homework (Ch 07) The following graph shows Kyoko's weekly demand for cheesecake, represented by the blue line. Point A represents a point along her weekly demand curve. The market price of cheesecake is $3.00 per slice, as shown by the horizontal black line. ? Kyoko's Weekly Demand 7.50 6.75 + 6.00 5.25 Demand 4.50 3.75 Price 3.00 2.25 + 1.50 + 0.75 + 0 0 4 6 8 10 12 14 16 18 QUANTITY (Slices of cheesecake) F3 F4 69 °F anny F1 PRICE (Dollars per slice) F2 2 0- 0+ F5 20 COL F6 F7 4- F8 J+ F9 F10 -O: F11 F12 Fn Lock X 9:49 A 6/3/20 Insert Prt Sc
01. Suppose there is only 1 product in the economy and that's Pizza, whoever wants to pay for pizza can be able to enjoy pizza. There two people Chris and Phill. Both are willing to pay 150$ for this pizza, but with this amount Chris wants to have 2 pizzas whilst Phill wants to have 3 pizzas. Being a pizza supplier by which method you can determine their demands for pizza and how can you ensure the market equilibrium. Support your answer with graph(s).
Suppose that Michelle buys a cappuccino from Paul's Cafe and Bakery for $5.75$5.75. Michelle was willing to pay up to $7.75$7.75 for the cappuccino, and Paul's Cafe and Bakery was willing to accept $2.25$2.25 for the cappuccino. Based on this information, answer the following questions. Michelle's consumer surplus: $ Paul's Cafe and Bakery's producer surplus: $
e E L E 11- esc CENGAGE MINDTAP Chapter 07 Homework Consider the market for electric vehicles. The market price of each electric vehicle is $340,000, and each consumer demands no more than one electric vehicle. Suppose that Antonio is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $595,000. Based on Antonio's willingness to pay, the following graph shows his demand curve for electric vehicles. PRICE (Thousands of dollars) Shade the area representing Antonio's consumer surplus using the green rectangle (triangle symbols). 680 595 1 ! 510 425 3:0 255 170 85 0 :0² FI Q A N Antonio's Demand Now, suppose another buyer, Caroline, enters the market for electric vehicles, and her willingness to pay is $425,000. @ 2 GO 2 QUANTITY (Electric vehicles) F2 W S 3 #3 80 F3 E Market Price D $ 4 X C 888 F4 R F Antonio's Consumer Surplus % 5 ng.cengage.com FS T V 6 MacBook Air G (?) F6 Y B & 7 H F7 U N * 8 J DII 1 ( 9 M K ) 0 0 F10 L P Q 90 AB
Consumer surplus is calculated by taking the difference of the price consumers are willing to pay and the price actually paid. When the price is $4, the consumer would buy only two bottles because the value the consumer would get from the first bottle is $7. This implies, the surplus is $3. Similarly for the second bottle, the value the consumer would get from consuming it is $5 where the price the consumer will pay is $4, this implies the surplus is $1. Lastly, for the third bottle the value is $3 and the price is $4 so the price surpasses the value, therefore the consumer will not consumer beyond two bottles. The consumer surplus could be calculated as: Consumer Surplus = (7-4) + (5-4) = 3 + 1 = 2 This means the consumer will buy two bottles. If the price falls to $2, the consumer would only buy three bottles because the value the consumer gets from the first bottle valued at $7 versus the $2 paid implies a consumer…
Suppose the price of acai bowls were to fall to $1.50 per bowl. At this lower price, Jake would receive a consumer surplus of $ acai bowl he buys. The following graph plots the monthly market demand curve (blue line) for acai bowls in a hypothetical small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of acai bowls is $2.25 per bowl. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the price falls to $1.50 per bowl. PRICE (Dollars per bowl) 7.50 6.75 6.00 5.25 4.50 3.75 3.00 2.25 1.50 0.75 0 0 Demand P = $2.25 P = $1.50 20 Small Economy's Monthly Demand 60 80 100 120 140 160 180 QUANTITY (Thousands of acai bowls) 40 200 Initial Consumer Surplus (P = $2.25) from the 6th Additional Consumer Surplus (P = $1.50)
Refer to the graph below. Assume that the initial equilibrium in the market for bus rides is point A (30 rides per week). The price of bus rides increases and the equilibrium shifts to point B (20 rides per week). The income effect of the change in consumer behavior is the $ of other consumption 45 40 35 30 25 20 15 10 5 T T T T T T L B C A 5 10 15 20 25; 30 35 40 45 26 # of bus rides per week decrease of consumption by 4 decrease of consumption by 6 increase of consumption by 6
The following graph shows Hilary's weekly demand for cheesecake, represented by the blue line. Point A represents a point along her weekly demand curve. The market price of cheesecake is $3.00 per slice, as shown by the horizontal black line From the previous graph, you can tell that Hilary is willing to pay $_______ for her 8th slice of cheesecake each week. Because she has to pay only$3.00 per slice, the consumer surplus she gains from the 8th slice of cheesecake is $_______. Suppose the price of cheesecake were to fall to $2.25 per slice. At this lower price, Hilary would receive a consumer surplus of $_______.from the 8th slice of cheesecake she buys.The following graph shows the weekly market demand for cheesecake in a small economy. Use the purple point (diamond symbol) to shade the area representing consumer surplus when the price (P) of cheesecake is $3.00 per slice. Then, use the green point (triangle symbol) to shade the area representing additional consumer surplus when the…
Using the table below, fill in the quantity of Good X where the consumer will maximize his/her utility. Assume the consumer only has $10.00 and Price of X is $1.00 each and the Price of Y is $1.00 each Quantity of Good X 1 Quantity of Good Y Marginal Utility of Y Marginal Utility of X 150 140 125 2 120 130 90 80 70 60 50 40 30 3 4 6 A) 5 OB) 7 The consumer will maximize his/her utility by consuming. C) 1 D) 3 120 110 F) 2 100 90 80 70 1 2 3 4 5 6 7 8 9 units of Good X.