Suppose Sam is willing to pay A total of 280,000 for an apartment. True or false: keep his maximum willingness to pay for an apartment in mind, Sam will buy the apparent because it would be worth more than marketplace of 350,000 Homework (Ch 07)Consider the market for apartments. The market price of each apartment is $350,000, 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 $560,000. Based on Lorenzo'swillingness to pay, the following graph shows his demand curve apartments.Shade the area representing Lorenzo's consumer surplus using the green rectangle (triangle symbols).?Lorenzo's Demand560490Lorenzo's Consumer Surplus420Market Price3502802101407007°FunnyPRICE (Thousands of dollars)HHTeO O^ =nyBased on Neha's and Lorenzo's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circlesymbol). Next, shade Lorenzo's consumer surplus using the green rectangle (triangle symbols), and shade Neha'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.560490Demand Curve420Market Price350Lorenzo's Consumer Surplus280Neha's Consumer Surplus210140700PRICE (Thousands of dollars)013QUANTITY (Apartments)GCIC50F10F11F12Fr

The maximum price or price range that an individual is ready to pay for purchasing a good or service…

Suppose Sam is willing to pay A total of 280,000 for an apartment. True or false: keep his maximum willingness to pay for an apartment in mind, Sam will buy the apparent because it would be worth more than marketplace of 350,000

Suppose Sam is willing to pay A total of 280,000 for an apartment. True or false: keep his maximum willingness to pay for an apartment in mind, Sam will buy the apparent because it would be worth more than marketplace of 350,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Homework (Ch 07)
Consider the market for apartments. The market price of each apartment is $350,000, 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 $560,000. Based on Lorenzo's
willingness to pay, the following graph shows his demand curve apartments.
Shade the area representing Lorenzo's consumer surplus using the green rectangle (triangle symbols).
?
Lorenzo's Demand
560
490
Lorenzo's Consumer Surplus
420
Market Price
350
280
210
140
70
0
7°F
unny
PRICE (Thousands of dollars)
HH
Te
O O
^

=
ny
Based on Neha's and Lorenzo's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle
symbol). Next, shade Lorenzo's consumer surplus using the green rectangle (triangle symbols), and shade Neha'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.
560
490
Demand Curve
420
Market Price
350
Lorenzo's Consumer Surplus
280
Neha's Consumer Surplus
210
140
70
0
PRICE (Thousands of dollars)
0
1
3
QUANTITY (Apartments)
G
CI
C
50
F10
F11
F12
Fr

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