1)It is a hot day, and Carlos is thirsty. Here is the value he places on a bottle of water: Value of first bottle: $9 Value of second bottle: $7 Value of third bottle: $4 Value of fourth bottle: $1 From this information, complete the following table by deriving Carlos’s demand schedule. Price Quantity Demanded More than $9 $7.01 to $9 $4.01 to $7 $1.01 to $4 $1 or fewer
1)It is a hot day, and Carlos is thirsty. Here is the value he places on a bottle of water:
|
Value of first bottle: |
$9 |
|
Value of second bottle: |
$7 |
|
Value of third bottle: |
$4 |
|
Value of fourth bottle: |
$1 |
From this information, complete the following table by deriving Carlos’s demand schedule.
|
|
Quantity Demanded |
|
More than $9 |
|
|
$7.01 to $9 |
|
|
$4.01 to $7 |
|
|
$1.01 to $4 |
|
|
$1 or fewer |
|
2)Based on Carlos's
3)Suppose the price of a bottle of water is $6.
Use the black line (plus symbol) to draw a price line at $6. Next use the grey point (star symbol) to indicate how many bottles of water Carlos will buy at that price. Finally, use the green point (triangle symbol) to shade the area that represents Carlos's
In this case, Carlos receives __$ ___ in consumer surplus from his water purchase.
If the price falls to $3, Carlos now buys________bottles of water. This __increase/decrease__ his consumer surplus to ___$___.
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