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

question 135

Essay

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?

---

Definitions:

Precedent

An established case, decision, or example that guides or influences subsequent situations or decisions in a similar context.

Occupational Safety

The practice of ensuring the workplace is safe and free from health risks, protecting employees from injuries or accidents.

Sick Building Syndrome

A condition affecting building occupants who experience acute health discomfort or illness, often linked to time spent in the building without a specific illness identified.

Workers' Compensation

A form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue their employer.