**Consumer Surplus for a Group of Consumers**The graph below illustrates the demand curve for five consumers in the U.S. market regarding tablet purchases, represented by a blue line. The market price for a tablet is shown as a black horizontal line at $150.Each identified rectangle corresponds to a buyer, indicated by symbols: orange square for Yakov, green triangle for Ana, purple diamond for Charles, tan dash for Dina, and blue circle for Gilberto. These rectangles are used to represent consumer surplus for those who will buy a tablet at the market price of $150. If a buyer will not purchase a tablet at the market price, leave the rectangle unchanged.### Graph Explanation- **X-Axis (Quantity in Tablets):** Ranges from 0 to 7.- **Y-Axis (Price in Dollars per Tablet):** Ranges from $0 to $400.- **Demand Curve:** A stepwise line that shows each buyer’s willingness to pay. - **Yakov**: Willing to pay $350. - **Ana**: Willing to pay approximately $275. - **Charles**: Willing to pay approximately $200. - **Dina**: Willing to pay exactly $150. - **Gilberto**: Willing to pay approximately $125, which is below the market price.- **Market Price Line:** Horizontal line at $150.**Key:**- **Yakov**: Orange rectangle (square symbol)- **Ana**: Green rectangle (triangle symbol)- **Charles**: Purple rectangle (diamond symbol)- **Dina**: Tan rectangle (dash symbol)- **Gilberto**: Blue rectangle (circle symbol)Based on this graph, fill in the blanks to determine who will buy tablets at the market price, and calculate the total consumer surplus in this market. **Title: Understanding Consumer Surplus at Increased Tablet Prices**---**Scenario:**Suppose the market price of a tablet increases to $250.**Instructions:**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 Yakov- **Green (triangle symbols)** for Ana- **Purple (diamond symbols)** for Charles- **Tan (dash symbols)** for Dina- **Blue (circle symbols)** for Gilberto**Note:** If a person will *not* purchase a tablet at the new market price, indicate this by leaving his or her rectangle in its original position on the palette.---**Graph Explanation:**- **Axes:** - The vertical axis represents the price of tablets in dollars, ranging from $0 to $400. - The horizontal axis indicates the quantity of tablets, from 0 to 8. - **Market Price Line:** - A black horizontal line is drawn at the $250 price level, denoting the new market price.- **Consumer Surplus Steps:** - The graph features a step-like curve that descends as the price decreases. Each step represents a different consumer's willingness to pay for a tablet. - **Yakov:** Willing to pay up to $375. - **Ana:** Willing to pay up to $350. - **Charles:** Willing to pay up to $275. - **Dina:** Willing to pay up to $175. - **Gilberto:** Willing to pay up to $50.- **Consumer Purchase Decision:** - Only Yakov, Ana, and Charles are willing to pay $250 or more for a tablet. - Dina and Gilberto will not purchase at this price.---**Conclusion Prompt:**Based on the information in the graph, when the market price of a tablet increases to $250, complete the following:- The number of consumers willing to buy a tablet changes from __ to __.- The total consumer surplus changes to $__.---This setup helps students understand the concept of consumer surplus and how it is affected by changes in market price.

Consumer surplus is the area below the demand curve and above the market price. Equilibrium reaches at the intersection of demand and market price curves.

Business

Economics

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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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