3. Consumer surplus for a group of consumers The following graph shaws the deman

Question

3. Consumer surplus for a group of consumers The following graph shaws 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 s90 Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Manuel, green (triangle symbols) for Poornima, purple (diamond symbols) for Shen, tan (dash symbols) for Valerie, and blue (circle symbols) for Antonio. 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 $90. Note: Ifa 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) Shen Market Price QUANTITY (Tabless) will buy tablets at the given market price, and total Based on the information on the previous graph, you can tell that three consumer surplus in this market will be $100 Suppose the market price of a tablet increases to $150 On the following graph, use the rectangles once again to shade the areas representing consumer surplus for each person who is willing and able to purchase a tablet at the new market price: orange (square symbols) for Manuel, green (triangle symbols) for Poormima, purple (diamond symbols) for Shen, tan (dash symbols) for Valerie, and blue (circle symbols) for Antonio, (Note: Ifa person will not purchase a tablet at the new market price, indicate this by leaving his or her rectanglo in its original position on the paletto) 210 Market Price Shen Shen 90 30 Antonio QUANTITY (Tables) Based on the information in the second graph, when the market price of a tablet increases to $150, the number of consumers willing to buy a tablet

Explanation / Answer

For questions with market price = 90

We have THREE CONSUMERS and Consumwe surplus = 240

But when market price = 150

We have TWO CONSUMERS and consumer surplus = 90

Note in graphic representation consumer surplus is counted as number of square boxes above market price line * 30 .

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