3. Consumer surplus for a group of consumers 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 $150. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Yakov, green (triangle symbols) for Ana, purple (diamond symbols) for Charles, tan (dash symbols) for Dina, and blue (circle symbols) for Gilberto. 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 $150. (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.) PRICE (Dollars per tablet) 400 350 300 250 200 150 100 50 0 0 1 Yakov 2 Ana Charles Dina 4 3 5 QUANTITY (Tablets) Market Price Gilberto 6 7 8 Based on the information on the previous graph, you can tell that consumer surplus in this market will be $ Yakov Ana Charles Dina Gilberto will buy tablets at the given market price, and total

3. Consumer surplus for a group of consumers 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 $150. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Yakov, green (triangle symbols) for Ana, purple (diamond symbols) for Charles, tan (dash symbols) for Dina, and blue (circle symbols) for Gilberto. 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 $150. (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.) PRICE (Dollars per tablet) 400 350 300 250 200 150 100 50 0 0 1 Yakov 2 Ana Charles Dina 4 3 5 QUANTITY (Tablets) Market Price Gilberto 6 7 8 Based on the information on the previous graph, you can tell that consumer surplus in this market will be $ Yakov Ana Charles Dina Gilberto will buy tablets at the given market price, and total

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter4: Demand, Supply, And Market Equilibrium

Section: Chapter Questions

Problem 21P

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3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line) for several consumers in the market for bluetooth speakers in Mead, a small town located in Colorado. The Mead market price of a bluetooth speaker is given by the horizontal black line at $35. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Dmitri, green (triangle symbols) for Frances, purple (diamond symbols) for Jake, tan (dash symbols) for Latasha, and blue (circle symbols) for Nick. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a bluetooth speaker at a market price of $35. (Note: If a person will not purchase a bluetooth speaker at the market price, indicate this by leaving his or her rectangle in its original position on the palette.) PRICE (Dollars per bluetooth speaker) 5 80 S 70 60 50 40 30 20 5 10 0 0 1 Dmitri 2 Frances 3…
Based on this graph,Calculate the consumer surplus from 500 pairs of shoes?
2. Individual and market demand Suppose that Brian and Crystal are the only consumers of pizza slices in a particular market. The following table shows their weekly demand schedules: Price (Dollars per slice) PRICE (Dollars per slice) 6 5 Y 0 1 0 2 3 4 5 Brian's Quantity Demanded (Slices) 8 5 3 4 On the following graph, plot Brian's demand for pizza slices using the green points (triangle symbol). Next, plot Crystal's demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). 8 1 12 0 16 QUANTITY (Slices) Crystal's Quantity Demanded (Slices) 16 20 12 24 8 6 4 Brian's Demand Crystal's Demand Market Demand ? Now, suppose that Crystal moves away, leaving Brian as the only consumer in the market. As a result, there will be a market demand curve because there will be a change in quantity demanded the
2) The following figure shows the demand curves for pens for two consumers. Price 40 Quantity Refer to the figure above and answer the following questions: a) How do you derive the market demand curve? Explain. b) Assuming that the market consists of only these two consumers, what is the market demand for pens when the price is $4? ) Assuming an increase in the price of notebooks, what will be the likely effect on consumers' demand for pens? Explain in terms of possible change in demand curves.
3. Individual and market demand Suppose that Jacques and Kyoko are the only consumers of pizza slices in a particular market. The following table shows their annual demand schedules: Price Jacques’s Quantity Demanded Kyoko’s Quantity Demanded (Dollars per slice) (Slices) (Slices) 1 40 80 2 25 60 3 15 40 4 5 30 5 0 20 On the following graph, plot Jacques’s demand for pizza slices using the green points (triangle symbol). Next, plot Kyoko’s demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right.
There are three consumers in the market for potato chips; Don, Peggy, and Pete. The following table displays each consumers' demand schedule for potato chips. For each blank space, type in the correct answer (write your answer as a number). Price per bag ($) .25 .50 .75 1.00 1.25 1.50 Don's demand 7 6 5 4 3 2 Peggy's demand 10 8 6 4 2 0 Pete's demand 6 5 4 3 2 1 a) At a price of $0.75 per bag, the quantity demanded by the market is [Select] units of potato chips. b) Suppose that the price of potato chips is initially $0.75 and increases to $1.25. There is [Select] by the market that is equal to [Select] units of potato chips. c) Suppose that Pete decides to go on a diet and will no longer purchases potato chips at any price. In addition, after Pete has left the market, suppose that we observe that the quantity of potato chips demanded by the market is equal to 14 units. We can therefore infer that the market price is [Select]
3. Individual and market demand Suppose that Darnell and Eleanor are the only consumers of pizza slices in a particular market. The following table shows their weekly demand schedules: Price Darnell's Quantity Demanded Eleanor's Quantity Demanded (Dollars per slice) (Slices) (Slices) 1 8 14 2 6 10 3 4 6 4 2 3 1 On the following graph, plot Darnell's demand for pizza slices using the green points (triangle symbol). Next, plot Eleanor's demand for pizza slices using the purple points (diamond symbol). Finally, plot the market demand for pizza slices using the blue points (circle symbol). Note: Line segments will automatically connect the points. Remember to plot from left to right.
2. Individual and market demand Suppose that Sean and Yvette are the only consumers of shoes in a particular market. The following table shows their annual demand schedules: Price (Dollars per pair) 10 20 30 40 50 PRICE (Dollars per pair) On the following graph, plot Sean's demand for shoes using the green points (triangle symbol). Next, plot Yvette's demand for shoes using the purple points (diamond symbol). Finally, plot the market demand for shoes using the blue points (circle symbol). (?) 60 50 30 20 10 0 0 16 Sean's Quantity Demanded Yvette's Quantity Demanded (Pairs) (Pairs) 32 64 20 48 12 32 4 24 0 16 32 48 64 QUANTITY (Pairs) 80 96 Sean's Demand Yvette's Demand O Market Demand Now, suppose that Yvette's twin brother, who likes shoes just as much a Yvette, moves to the area, adding another consumer in the market. As a result, there will be a ▼ the market demand curve because there will be a change in quantity demanded
4 Refer to Table below. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. At a price of $6, the quantity demanded in the market would be Kona Coffee Price per lb. (dollars) Luke's Quantity Demanded (lbs.) Ravi's Quantity Demanded (lbs.) Rest of Market Quantity Demanded (lbs.) Market Quantity Demanded (lbs.) $10 3 0 23 8 9 3 32 6 14 7 68 5 18 12 85 4 22 18 110 a. 123 lbs b. 89 lbs c. 36 lbs d. 68 lbs
I. For the normal good, make a (Hypothetical) linear demand schedule with 7 different price points and corresponding quantity demanded for your own household. For the same normal good, make another (Hypothetical) linear demand schedule with 7 different price points and corresponding quantity demanded for your neighbor. Assuming that you and your neighbor are the only two households in the market, make a market demand schedule for the same normal good. Draw and interpret a graph to show the market demand and impact of changes in quantity demanded, if price of the same normal good decreases.
Consider the demand for measuring tapes. The demand for measuring tapes is Qd 750 7p and the supply is Qs = 500 + 6p. Use the equations to develop a table with price, demand and supply, then draw the market graph. Use the graph to calculate the consumer's surplus.
Calculate consumer surplus based on a graph or table.