2. Individual demand and consumer surplus Consider the market for electric vehicles. The market price of each electric vehicle is $170,000, and each consumer demands no more than one electric vehicle. Suppose that Felix is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $425,000. Based on Felix's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Felix's consumer surplus using the green rectangle (triangle symbols). Felix's Consumer Surplus 0 1 2 3 4 5 680 595 510 425 340 255 170 85 0 PRICE (Thousands of dollars) QUANTITY (Electric vehicles) Felix's Demand Market Price Now, suppose another buyer, Janet, enters the market for electric vehicles, and her willingness to pay is $255,000. Based on Janet's and Felix's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Felix's consumer surplus using the green rectangle (triangle symbols), and shade Janet'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. Demand Curve Felix's Consumer Surplus Janet's Consumer Surplus 0 1 2 3 4 5 680 595 510 425 340 255 170 85 0 PRICE (Thousands of dollars) QUANTITY (Electric vehicles) Market Price Suppose Larry 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, Larry will buy the electric vehicle because it would be worth more to him than its market price of $170,000. True False