It is hot day, and Bert is thirsty. Here is the value he places on each bottle of water: Value of first bottle $7 Value of second bottle $5 Value of…

It is hot day, and Bert is thirsty. Here is the value he places on each bottle of water:

Value of first bottle          $7        

Value of second bottle    $5

Value of third bottle         $3

Value of fourth bottle      $1

a. From this imformation, deerive Bert’s demand schedule. Graph his demand curve for bottle water.

b. If the price of a bottle of water is $4 how many bottles does Bert by? How much consumer surplus does

Bert get from his purchase? Show Bert’s consumer surplus in a graph.

c. If the price falls to $2, how does quanity demand change? How does Bert’s consumer surplus change?

How does Bert’s consumer surplus change? Show these changes in a graph. 

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