2. Individual demand and consumer surplus Consider the market for hyperbaric chambers. The market price of each hyperbaric chamber is $280,000, and each consumer demands no more than one hyperbaric chamber. Suppose that Nick is the only consumer in the hyperbaric chamber market. Their willingness to pay for a hyperbaric chamber is $490,000. Based on Nick's willingness to pay, the following graph shows his demand curve for hyperbaric chambers. Shade the area representing Nick's consumer surplus using the green rectangle (triangle symbols). Nick's Consumer Surplus 0 1 2 3 4 5 560 490 420 350 280 210 140 70 0 PRICE (Thousands of dollars) QUANTITY (Hyperbaric chambers) Nick's Demand Market Price Now, suppose another buyer, Rosa, enters the market for hyperbaric chambers, and her willingness to pay is $350,000. Based on Rosa's and Nick's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Nick's consumer surplus using the green rectangle (triangle symbols), and shade Rosa'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 Nick's Consumer Surplus Rosa's Consumer Surplus 0 1 2 3 4 5 560 490 420 350 280 210 140 70 0 PRICE (Thousands of dollars) QUANTITY (Hyperbaric chambers) Market Price Suppose Tim is willing to pay a total of $210,000 for a hyperbaric chamber. True or False: Keeping his maximum willingness to pay for a hyperbaric chamber in mind, Tim will not buy the hyperbaric chamber because it would be worth less to him than its market price of $280,000. True False