How does bert consumer surplus change

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Reference no: EM1350498

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

Value if first bottle $7

value of second bottle 5

value of third bottle 3

value of fourth bottle 1

a) from this information, derive Bert's demand schedule. Graph his demand curve for bottled water.

b)If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases? Show Bert's consumer surplus in your graph.

c) If the price falls to $2, how does quantity demanded change? How does Bert's consumer surplus change? Show these changes in your graph.

Reference no: EM1350498

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