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Unformatted text preview: puted earlier when only 1 album is sold. Panel (b) of Figure 7-2 shows consumer surplus when the price is $70 (or slightly above). In this case, the area above the price and below the demand curve Table 7-2 T HE D EMAND S CHEDULE FOR THE B UYERS IN T ABLE 7-1 P RICE B UYERS Q UANTITY D EMANDED More than $100 None $80 to $100 John 1 $70 to $80 John, Paul 2 $50 to $70 John, Paul, George 3 $50 or less John, Paul, George, Ringo 4 Price of Album 50 70 80 $100 Quantity of Albums Demand 1 2 3 4 Johns willingness to pay Pauls willingness to pay Georges willingness to pay Ringos willingness to pay Figure 7-1 T HE D EMAND C URVE . This figure graphs the demand curve from the demand schedule in Table 7-2. Note that the height of the demand curve reflects buyers willingness to pay....
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- Spring '10