Essay About Market Demand Schedule And Consumers’ Demands

Econ Assignment 1-3
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Chapter 53(a): The market demand schedule shows the sum of the quantities demanded by Ann, Beth and Cy at each price as below:Price(dollars per mile)Quantity Demanded (miles)Market Quantity DemandAnnBethCy33025207542520156052015104561510530710501585005900003(b): Each person’s demand schedule shows the maximum price that person is willing to pay to travel 20 miles. The maximum price Ann is willing to pay to travel 20 miles is $5, the maximum price Beth is willing to pay is $4, and the maximum price Cy is willing to pay is $3.4(a): The marginal social benefit when the quantity is 60 miles is $4 per mile. The marginal social benefit is determined from the consumers’ demands and equals the maximum price that consumers will pay for the quantity. The demand schedule shows that the maximum price consumers will pay for 60 miles is $4 per mile and this price equals the marginal social benefit.4(b): The three people travel a total distance of 60 miles when the price is $4 a mile. Each person’s marginal benefit is $4 per mile. At this price Ann travels 25 miles, Beth travels 20 miles, and Cy travels 15 miles.

5(a): Ann’s consumer surplus =  × ($9 – $4) × 25 = 62.5[pic 1]Beth’s consumer surplus =  × ($8 – $4) × 20 = 40[pic 2]Cy’s consumer surplus =  × ($7 – $4) × 15 = 22.5[pic 3]5(b): The market consumer surplus = 62.5 + 40 + 22.5 = $125.6(a): The market supply schedule shows the sum of the quantities supplied by Xavier, Yasmin, and Zack at each price as below:Price(dollars per ride)Quantity Supplied (rides per week)MarketSupplyXavierYasminZack100302520759025201560802015104570151053060105015505005400000