1. The village of Copsi has 100 identical residents who all love the local drink, Popsi. Each resident of Copsi has the following willingness to pay for Popsi: First bottle: $5 Second bottle: $4 Third bottle: $3 Fourth bottle: $2 Fifth bottle: $1 Sixth bottle: $0 The equilibrium price of Popsi is $1/bottle. The cost of producing Popsi is $1/bottle, no matter how many bottles are produced. (note: what will the supply curve for Popsi look like? Hint: Perfectly elastic) a. Draw a supply-and-demand diagram of the market of Popsi. To make it simpler, draw the demand curve for just one resident. b. How many bottles of Popsi will each resident consume? Please calculate a value. C. How much consumer surplus will each resident get? Please calculate a value. d. How much economic surplus is created per resident of Copsi? Please calculate a value.

1. The village of Copsi has 100 identical residents who all love the local drink, Popsi. Each resident of Copsi has the following willingness to pay for Popsi: First bottle: $5 Second bottle: $4 Third bottle: $3 Fourth bottle: $2 Fifth bottle: $1 Sixth bottle: $0 The equilibrium price of Popsi is $1/bottle. The cost of producing Popsi is $1/bottle, no matter how many bottles are produced. (note: what will the supply curve for Popsi look like? Hint: Perfectly elastic) a. Draw a supply-and-demand diagram of the market of Popsi. To make it simpler, draw the demand curve for just one resident. b. How many bottles of Popsi will each resident consume? Please calculate a value. C. How much consumer surplus will each resident get? Please calculate a value. d. How much economic surplus is created per resident of Copsi? Please calculate a value.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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hello, please help me!! You only choose one secinario and draw about it. please make sure which one you choose.
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Please help with Question C and provide solution thank you