Table shows four consumers' willingness to pay for a shirt, and in what quantities. For example, Ginger wants to buy two shirts, and is willing to pay at most $25 per shirt.
Consumer Willingness to Pay (WTP) Quantity
Jack $15 1
Jill $40 3
Ginger $25 2
Fred $20 1
(a) Construct the market demand schedule for the shirt market, assuming that Jack, Jill, Ginger, and Fred are the only consumers in the market.
(b) If the market price for shirts is $22 per shirt, how many shirts will each consumer buy and what is market demand? Calculate total consumer surplus.
(c) On a graph, draw the market demand curve for shirts and show total consumer surplus when the market price is $22.
(d) Suppose the market price for shirts increases to $30 per shirt. How many shirts will each consumer buy and what is market demand? How does total consumer surplus change in comparison to the original price of $22 per shirt?