2. Individual demand and consumer surplus Consider the market for yachts. The market price of each yacht is $300,000, and each buyer demands no more than one yacht. Suppose that Hubert is the only consumer in the yacht market. His willingness to pay for a yacht is $480,000. Based on Hubert's willingness to pay, the following graph shows his demand curve for yachts. Shade the area representing Hubert's consumer surplus using the green rectangle (triangle symbols). Hubert's Consumer Surplus 0 1 2 3 4 5 480 420 360 300 240 180 120 60 0 PRICE (Thousands of dollars) QUANTITY (Yachts) Hubert's Demand Market Price Area: 120 Now, suppose another buyer, Kate, enters the market for yachts, and her willingness to pay is $360,000. Based on Kate's and Hubert's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle 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). 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 Hubert's Consumer Surplus Kate's Consumer Surplus 0 1 2 3 4 5 480 420 360 300 240 180 120 60 0 PRICE (Thousands of dollars) QUANTITY (Yachts) Market Price Suppose Manuel is willing to pay a total of $240,000 for a yacht. True or False: Keeping his maximum willingness to pay for a yacht in mind