4. In chapter 3 we learned about “willingness to pay” which is defined as the maximum amount...

4. In chapter 3 we learned about “willingness to pay” which is defined as the maximum amount that a person will pay for something. This chart shows Larry’s willingness to pay for used video games for his gaming system.

Number of Video Games	Willingness to Pay
1	$20
2	$35
3	$42
4	$47
5	$50
6	$52

a. Calculate Larry’s marginal utility from video games.Show work.

b. On a graph, draw Larry’s individual demand curve for video games.

c. Show Larry’s consumer surplus on your graph if the price of one video game is $3.

5. This chart shows Cheryl’s willingness to pay for a pair of sandals.

Pairs of Sandals	Willingness to Pay
1	$35
2	$60
3	$80
4	$97
5	$112
6	$126

a. Calculate Cheryl’s marginal utility from sandals.Show work.

b. On a graph, draw Cheryl’s individual demand curve for sandals.

c. Show Cheryl’s consumer surplus on your graph if the price of one pair of sandals is $17

Expert Solution

Rahul Sunny answered 2 years ago

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