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 Hubert is the only consumer in the hyperbaric chamber market. Their willingness to pay for a hyperbaric chamber is $490,000. Based on Hubert's willingness to pay, the following graph shows his demand curve for hyperbaric chambers. Shade the area representing Hubert's consumer surplus using the green rectangle (triangle symbols). Hubert's Demand 480 Hubert's Consumer Surplus 420 360 Market Price PRICE (Thousands of dollars) 280 210 140 TO 2 E QUANTITY (Hyperbaric chambers)Now, suppose another buyer, Kate, enters the market for hyperbaric chambers, and her willingness to pay is $350,000. Based on Kate's and Hubert's respective wWingness to pay, plot the market demand curve on the following graph using the blue points (crude 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. SM Demand Curve 350 Hubert's Consumer Surplus Market Price PRICE (Thousands of dollars) Kate's Consumer Surplus TO QUANTITY (Hyperbaric chambers) Suppose Manuel 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, Manuel will not buy the hyperbaric chamber because it would be worth less to him than its market price of $280,000. O True Q False3. Consumer surplus for a group of consumers The following graph plots the demand curve (blue line) for several consumers in the market for motor scooters In Meade, a small town located in Kansas. The Meade market price of a motor scooter is given by the horizontal black line at $240. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Antonio, green (triangle symbols) for Caroline, purple (diamond symbols) for Dmitri, tan (dash symbols) for Frances, and blue (orde symbols) for Jake. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at a market price of $340. (Note: If a person will not purchase a motor scooter at the market price, Indicate this by leaving his or her rectangle in its onlyinel position on the palette.) Antonio Carolina Antonio Dmitri Carolina Market Price PRICE (Dollars per motor scooter Finnous Dmitri 130 Jake QUANTITY [Motor scooters) Based on the Information on the previous graph, you can tell that I will buy motor scooters at the given market price, and total consumer surplus in this market will be$ Suppose the market price of a motor scooter decreases to $120.Based on the Information on the previous graph, you can tell that will buy motor scooters at the given market price, and total consumer surplus in this market will be # Suppose the market price of a motor smoter decreases to $120. On the following graph, use the rectangles once again to shade the areas representing consumer surplus for each person who is willing and able to purchase a motor scooter at the new market price: orange (square symbols) for Antonio, green (triangle symbols) for Caroline, purple (diamond "winbois) for Dmitri, tan (dash symbols) for Frances, and blue (onde symbols) for Jake. (Note: If a person will not purchase a motor scooter at the new market price, Indicate this by leaving his or her rectangle in its original position on the palette.) Antonio Carolina Antonio Dmitri XIX PRICE (Dolars por motor scooter) Dmitri Market Price Jake Frances QUANTITY [Motor scooters) Based on the Information in the second graph, when the market price of a motor scooter decreases to $120, the number of consumers willing to buy a motor scooter to . and total consumer surplus 7 to $