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In both Atlantis and Lemuria, the market for tridents is such that the price is $20 and the quantity bought and sold is 500 tridents.
In both Atlantis and Lemuria, the market for tridents is such that the price is $20 and the quantity bought and sold is 500 tridents. Demand for tridents in both countries is linear. However, demand is generally more price-elastic in Lemuria than in Atlantis at every price. . (a) T/F/U: Consumer surplus in the market for tridents is higher in Atlantis than in Lemuria. (Please draw a graph to explain your answer.) . (b) A trident manufacturer in Symkaria has 100 extra tridents and wants to donate them to one of the two countries. They will give them to the 100 consumers who have the highest willingness to pay who do not already have a trident. T/F/U: Donating them to consumers in Atlantis would increase consumer surplus more than donating them to consumers inLemuria. (Please draw a graph to explain your answer. You may either draw a new graph or use your graph from (a); either is fine.)
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