The data below show Paula and Susan's willingness to pay for compact discs.
(A)Calculate the marginal benefits for both people. (
B)Draw Paula's and Susan's individual demand curves for compact discs.Draw the market demand curve for a market consisting only of these two people. (
C)Suppose the price of compact discs is $15.How many will Paula and Susan buy? Calculate the consumer surplus for each person.Show the area of consumer surplus in your diagram. (
D)What is the consumer surplus for the market as a whole? Does this equal the sum of the two individual consumer surpluses?

Question

The data below show Paula and Susan's willingness to pay for compact discs.  
(A)Calculate the marginal benefits for both people. (
B)Draw Paula's and Susan's individual demand curves for compact discs.Draw the market demand curve for a market consisting only of these two people. (
C)Suppose the price of compact discs is $15.How many will Paula and Susan buy? Calculate the consumer surplus for each person.Show the area of consumer surplus in your diagram. (
D)What is the consumer surplus for the market as a whole? Does this equal the sum of the two individual consumer surpluses?

Quizplus · Accepted Answer

The Answer of The data below show Paula and Susan's willingness to pay for compact discs.  
(A)Calculate the marginal benefits for both people. (
B)Draw Paula's and Susan's individual demand curves for compact discs.Draw the market demand curve for a market consisting only of these two people. (
C)Suppose the price of compact discs is $15.How many will Paula and Susan buy? Calculate the consumer surplus for each person.Show the area of consumer surplus in your diagram. (
D)What is the consumer surplus for the market as a whole? Does this equal the sum of the two individual consumer surpluses?

The Data Below Show Paula and Susan's Willingness to Pay