(Solved): 2. Individual demand and consumer surplus Consider the market for electric vehicles. The market pr ...

2. Individual demand and consumer surplus Consider the market for electric vehicles. The market price of each electric vehicle is $$\$280,000$$, and each consumer demands no more than one electric vehicle. Suppose that Andrew is the only consumer in the electric vehicle market. Their willingness to pay for an electric vehicle is $$\$490,000$$. Based on Andrew's willingness to pay, the following graph shows his demand curve for electric vehicles. Shade the area representing Andrew's consumer surplus using the green rectangle (triangle symbols). Now, suppose another buyer, Beth, enters the market for electric vehicles, and her willingness to pay is $$\$420,000$$. Based on Beth's and Andrew's respective willingness to pay, plot the market demand curve on the following graph using the blue points (circle symbol). Next, shade Andrew's consumer surplus using the green rectangle (triangle symbols), and shade Beth'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 Darnell is willing to pay a total of $$\$210,000$$ for an electric vehicle. True or False: Keeping his maximum willingness to pay for an electric vehicle in mind, Darnell will buy the electric vehicle because it would be worth more to him than its market price of $$\$280,000$$. True False