Based on Kate's and Hubert's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circlesymbol). Next, shade Hubert's consumer surplus using the green rectangle (triangle symbols), and shade Kate's consumer surplus using the purplerectangle (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)B500510425340200170SQUANTITY (Electric vehicles)O TrueO FalseMarket PriceDemand CurveHubert's Consumer SurplusKate's Consumer SurplusSuppose Manuel is willing to pay a total of $85,000 for an electric vehicle.True or False: Keeping his maximum willingness to pay for an electric vehicle in mind, Manuel will buy the electric vehicle because it would be worthmore to him than its market price of $170,000. 2. Individual demand and consumer surplusConsider the market for electric vehicles. The market price of each electric vehicle is $170,000, and each consumer demands no more than oneelectric vehicle.Suppose that Hubert is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $425,000. Based on Hubert'swillingness to pay, the following graph shows his demand curve for electric vehicles.Shade the area representing Hubert's consumer surplus using the green rectangle (triangle symbols).?PRICE (Thousands of dollars)8505510340256170215Hubert's DemandQUANTITY (Electric vehicles)Market PriceHubert's Consumer SurplusNow, suppose another buyer, Kate, enters the market for electric vehicles, and her willingness to pay is $255.000.4

A consumer buys a product only if the consumer's willingness to pay is greater than or equal to the…

Based on Kate's and Hubert's respective willingness to pay, plot the market demand curve on the following graph using the blue points (0 symbol), Next, shade Hubert's consumer surplus using the green rectangle (triangle symbols), and shade Kate's consumer surplus using the purple rectangle (diamond symbols)

Based on Kate's and Hubert's respective willingness to pay, plot the market demand curve on the following graph using the blue points (0 symbol), Next, shade Hubert's consumer surplus using the green rectangle (triangle symbols), and shade Kate's consumer surplus using the purple rectangle (diamond symbols)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter6: Demand Relationships Among Goods

Section: Chapter Questions

Problem 6.4P

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