Answer to Question #108619 in Microeconomics for Vineelsai Reddy Kesavarapu

Question

The buyers’ side of the market for amusement park tickets consists of two consumers whose demand curves are shown in the diagram below.

a. Graph the market demand curve for this market.


Instructions: Use the tool provided to plot the market demand curve for prices: $36, $24 and $0 (three points total).

Instructions: Enter your response as a whole number.



b. Calculate the total consumer surplus in the amusement park market if tickets sell for $12 each. $ per year.

Answer 1

Solution:

If p=12 then q=20

$$0.5 \times (36-12)\times20=240$$