Individual demand and consumer surplus\ Consider the market for electric vehicles. The market price of each electric vehicle is

$165,000

, and each consumer demands no more than one electric vehicle.\ Suppose that Bob is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is

$330,000

. Based on Bob's willingness to pay, the following graph shows his demand curve for electric vehicles.\ Shade the area representing Bob's consumer surplus using the green rectangle (triangle symbols).\ (?)\ Bob's Consumer Surplus\ \ Now, suppose another buyer, Cho, enters the market for electric vehicles, and her willingness to pay is

$220,000

.\ Based on Cho's and Bob's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Bob's consumer surplus using the green rectangle (triangle symbols), and shade Cho'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.\ (?)\ Suppose Eric is willing to pay a total of

$110,000

for an electric vehicle.\ \ Bob's Consumer Surplus\ Cho's Consumer Surplus\ Suppose Eric is willing to pay a total of

$110,000

for an electric vehicle.\ True or False: Keeping his maximum willingness to pay for an electric vehicle in mind, Eric will not buy the electric vehicle because it would be worth less to him than its market price of

$165,000

.\ True\ False\ Continue without saving

Suppose Eric is willing to pay a total of $110,000 for an electric vehicle. True or False: Keeping his maximum willingness to pay for an electric vehicle in mind, Eric will not buy the electric vehicle because it would be worth less to him than its market price of $165,000. True False