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.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please see below. I need help with this.
Please refer to the following information to answer the question (in bold) below: You enjoy consuming apples (A) and oranges (O). Suppose that your utility function over both goods is given by Your marginal utility function for apples is . Your marginal utility function for oranges is U (A, O) = AO³ MUA = 0³ MUO 3A0² . Currently, the price of apples is $10/peck, the price of oranges is $5/pound, and your income is $160. Assume that apples are your horizontal axis good and oranges are your vertical axis good. = When you set up the optimal decision rule for your consumer problem, which of the following statements best describes how much you will buy of apples and oranges at your consumer equilibrium? For each peck of apples, you will buy 1/3 pounds of oranges. For each peck of apples, you will buy 1 pounds of oranges. O For each peck of apples, you will buy 3 pounds of oranges. O For each peck of apples, you will buy 6 pounds of oranges.
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
4. Aaron and Burris have the following utility functions over two goods, x and y. Aaron’s utility function: UA(xA, yA) = min{xA/3, yA} Burris’s utility function: UB(xB, yB) = 9xB + 3yB Aaron’s endowment is eA = (2, 4). Burris’ endowment is eB = (10, 8). In an Edgeworth Box diagram, show which allocations are in the core. Solve for the set of Pareto optimal allocations (i.e. the contract curve) in the Edgeworth Box. Illustrate the contract curve in an Edgeworth Box diagram. Let good y be the numeraire (i.e. set py = 1 and let px = p). Solve for the Walrasian competitive equilibrium allocation and price ratio.
Assume the market clearing price is $5.00 for deli sandwiches and the amount of exchange that would take place at that price is 200 deli sandwiches per day. You, however, don't have this information and have just opened your deli. You decide to price your sandwiches at $9.00 and are willing and able to sell 285 sandwiches per day at that price. When you do this, you notice you sell 100 sandwiches per day. Draw this situation on a graph and then explain what will happen in this market -- i. e., if there is a shortage or surplus, show this on the graph and then explain what the shortage or surplus will cause to happen in the market. Make sure you talk about inventories in your answer.
True or false: keeping his maximum willingness to pay for a yacht in mind, Tim will buy the yacht because it will be worth more to him than its market price of $350,000
Consider the market for apartments. The market price of each apartment is $300,000, and each buyer demands no more than one apartment. Suppose that Lorenzo is the only consumer in the apartment market. His willingness to pay for an apartment is $480,000. Based on Lorenzo's willingness to pay, the following graph shows his demand curve for apartments. Shade the area representing Lorenzo's consumer surplus using the green rectangle (triangle symbols).
Marvin has a Cobb-Douglas utility function, 0.5 0.5 U= 91 92 his income is Y = $900, and initially he faces prices of p₁ = $1 and p2 = $4. If p₁ increases from $1 to $2, what are his compensating variation (CV), change in consumer surplus (ACS), and equivalent variation (EV)? Marvin's change in consumer surplus (ACS) is $ minus sign if necessary.) Marvin's compensating variation (CV) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.) (Enter your response rounded to two decimal places and include a Marvin's equivalent variation (EV) is $. (Enter your response rounded to two decimal places and include a minus sign if necessary.)
Consider the pure exchange economy with 2 goods, good 1 and good 2, and two consumers, consumer A and consumer B. The consumers have the following utility functions: UA(X1A,X2A)=X1A+3x2A; UB(X1B,X2B)=x1B +X2B. Consumer A is initially endowed with 4 units of good A and no unit of good 2, that is, consumer A's initial endowment is (W1A,W2A)=(4,0). Consumer B is initially endowed with 3 units of good 2 and no unit of good 1, that is, (WIB,W2B)=(0,3). In order to implement the allocation (x1A,X2A)=(0,1), (x1B,X2B)=(4,2) as a Walrasian equilibrium, what transfer of wealth should we make between the consumers if good 1 is the numeraire, that is, if p1 =1? O a. An amount 7 of wealth should be transferred from consumer A to consumer B. O b. None of the other answers. An amount 3 of wealth should be transferred from consumer A to consumer B. O c. d. An amount 3 of wealth should be transferred from consumer B to consumer A. An amount 7 of wealth should be transferred from consumer B to consumer…
Smith and Jones are stranded on a desert island. Each has in her possession some slices of ham (H) and cheese (C). Smith prefers to consume ham and cheese in the fixed proportion of 2 slices of cheese to each slice of ham. Her utility function is given by Us = min(10H, 5C). Jones, on the other hand, regards ham and cheese as substitutes – she is always willing to trade 3 slices of ham for 4 slices of cheese, and her utility function is given by UJ = 4H + 3C. Total endowments are 100 slices of ham and 200 slices of cheese. a. Draw the Edgeworth Box diagram for all possible exchanges in this situation. What is the contract curve for this exchange economy? b. Suppose Smith’s initial endowment is 40 slices of ham and 80 slices of cheese (Jones has the remaining ham and cheese as her initial endowment). What mutually beneficial trades are possible in this economy and what utility levels will Smith and Jones enjoy from such trades? c. Now imagine a new endowment in which Smith has 60 slices…
1.2 Ann and Bob each own 10 bottles of beer and, altogether, they own 20 bags of peanuts. There are no other people and no other goods in the economy, and no production of either good is possible. Using a to denote bottles of beer and y to denote bags of peanuts, Ann's and Bob's preferences are described by the following utility functions: UA (XA, YA) = TAYA and UB (XB, YB) = 2xB+ YB. In each of the following cases, determine the market equilibrium price ratio and allocation and depict the equilibrium in an Edgeworth box diagram. (a) Bob owns 20 bags of peanuts and Ann owns no peanuts. (b) Bob owns 15 bags of peanuts and Ann owns 5 bags. (c) Ann owns 20 bags of peanuts and Bob owns no peanuts.
only question 1