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Suppose that I am selling cans of beer to people on a beach. Since I am concerned about my income (and since I am the only beer seller), I decide to sell beer in the following way. I will not tell the people on the beach how many cans of beer I have. I will sell the cans of beer individually to my customers. Each can of beer will go to the highest bidder, and the person who buys the can of beer from me will be required to consume the can of beer.
The first can of beer sells for $3.70. The second can of beer sells for $3.40, the third for $3.10, the fourth for $2.80, the fifth for $2.50, and the sixth for $2.20. It is very good beer!
(1) In both tabular (a table) and graphical form (chart of graph) show the demand for beer for the consumers on the beach.
(2) If I offer to sell the beer at a single price of $2.80 (i.e., do not follow my auction scheme), how many cans of beer will I sell?
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