9 . Consumer surplus and price changes The following graph shows the demand curve for a group of buyers in the market for DVD players. Each buyer wants only one DUD player. Assume that if an individual has a willingness to pay just equal to the market price, they will make the purchase. (9 Flaji'lr 480 400 5 Ana 2 320 * E D B E :1 240 + E Charles E Q, |_|_|1E-0 2 D: n. 30 I} QUANTITY (DVD player] Region A {the green shaded area) represents total consumer surplus when the market price is , while region B (the grey shaded area) represents v when the market price v . the change in total consumer surplus .ternents are true or false based on the Information provided on the previous graph. the total consumer surplus True False Consumer surplus is larger when the price is $240 than when it is $320. O O Assuming each buyer receives a positive surplusr Simone will always receive less consumer surplus than Yakoy. O O O There are fewer buyers buying DVD players in this market when the market price is $240 than when it is $320. In order for Charles to earn a consumer surplus of exactly $40 from buying a DVD player, the market price needs to be-. Region A (the green shaded area) represents total consumer surplus when the market price is $ , while region B (the grey shaded area) represents when the market price changes from $320 to $240 Complete the following table by indicating which statements are true or false bas on the previous graph. is $240 Statement True False changes from $240 to $160 Consumer surplus is larger when the price is $240 than when it is $320. O O is $320 Assuming each buyer receives a positive surplus, Simone will always receive les O O There are fewer buyers buying DVD players in this market when the market price is $240 than when it is $320. O O In order for Charles to earn a consumer surplus of exactly $40 from buying a DVD player, the market price needs to be $Region A (the green shaded area) represents total consumer surplus when the market price is $ , while region B (the grey shaded area) represents when the market price Complete the following table by indicating which statements are true or false based on the information provided on the previous graph. Statement True False Consumer surplus is larger when the price is $240 than when it is $320. O O Assuming each buyer receives a positive surplus, Simone will always receive less consumer surplus than Yakov. O O There are fewer buyers buying DVD players in this market when the market price is $240 than when it is $320. O O In order for Charles to earn a consumer surplus of exactly $40 from buying a DVD player, the market price needs to be $6 . Total welfare The following graph shows supply and demand in the market for computer keyboards. Use the black point (cross symbol) to indicate the equilibrium price and quantity of computer keyboards. Then use the green point (triangle symbol) to fill the area representing consumer surplus, and use the purple point (diamond symbol) to fill the area representing producer surplus. 150 Demand .+ 135 Equilibrium 120 A 105 Consumer Surplus 75 PRICE (Dollars per keyboard) 80 Producer Surplus 45 15 Supply 50 100 150 200 250 300 350 400 450 500 QUANTITY (Millions of keyboards) Total welfare in this market is $ (Hint: Note the units on the X-axis.)