Consumer Surplus

3. Consumer surplus for a group of consumers The following graph shows the demand curve for a group of consumers in the U.S. market (blue line) for laptops. The market price of a laptop is shown by the black horizontal line at $120. Each rectangle you can place on the following graph corresponds to a particular buyer in this market: orange (square symbols) for Dmitri, green (triangle symbols) for Frances, purple (diamond symbols) for Jake, tan (dash symbols) for Latasha, and blue (circle symbols) for Nick. Use the rectangles to shade the areas representing consumer surplus for each person who is willing and able to purchase a laptop at a market price of $120. (Note: If a person will not purchase a laptop at the market price, indicate this by leaving his or her rectangle in its original position on the palette.)240 Dmitri 210 Frances Dmitri 180 Jake 150 Frances Market Price PRICE (Dollars per laptop) 120 Latasha 90 Jake 60 Nick Latasha 30 0 2 3 4 5 6 7 Nick QUANTITY (Laptops)Based on the information on the previous graph, you can tell that will buy laptops at the given market price, and total consumer surplus in this market will be $ Suppose the market price of a laptop decreases to $60. 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 laptop at the new market price: orange (square symbols) for Dmitri, green (triangle symbols) for Frances, purple (diamond symbols) for Jake, tan (dash symbols) for Latasha, and blue (circle symbols) for Nick. (Note: If a person will not purchase a laptop at the new market price, indicate this by leaving his or her rectangle in its original position on the palette.)240 Dmitri 210 Frances Dmitri 180 Jake 150 Frances PRICE (Dollars per laptop) 120 Latasha 90 Jake Market Price Nick Latasha 30 1 2 3 4 6 7 Nick QUANTITY (Laptops) Based on the information in the second graph, when the market price of a laptop decreases to $60, the number of consumers willing to buy a laptop to , and total consumer surplus to $