C. A recent article published in "Globe and Mail" revealed that addiction to video games among children and "young-at-heart" adults is growing in Canada. Use an appropriate diagram with two demand curves, DA representing the demand function for video games by players who are addicted to video games and D1 representing the demand function for video games by recreational players of video games who enjoy playing these games oceasionally. Assume that the marginal of the video games is perfectly elastic at PO. (i) Determine the quantity of video games demanded by addicted and non-addicted recreational players. Explain your results. (ii) Determine consumer surplus enjoyed by non-addicted players. (iii) How much do the addicted players spend? Is it valued equally by the nonaddicted players? Explain. (iv) Determine the social benefits of a program designed to rehabilitate all addicted players of video games so that they all become recreational players. Explain your results..

1. C. A recent article published in "Globe and Mail" revealed that addiction to video games among
children and "young-at-heart" adults is growing in Canada. Use an appropriate diagram with two
demand curves, DA representing the demand function for video games by players who are
addicted to video games and D1 representing the demand function for video games by
recreational players of video games who enjoy playing these games oceasionally. Assume that the
marginal of the video games is perfectly elastic at PO. (i) Determine the quantity of video games
demanded by addicted and non-addicted recreational players. Explain your results. (ii) Determine
consumer surplus enjoyed by non-addicted players. (iii) How much do the addicted players
spend? Is it valued equally by the nonaddicted players? Explain. (iv) Determine the social benefits
of a program designed to rehabilitate all addicted players of video games so that they all become
recreational players. Explain your results.