8. Consumer and Producer Surplus Suppose Gilberto is the only seller in the market for bottled water and Charles is the only buyer. The following lists show the value Charles places on a bottle of water and the cost Gilberto incurs to produce each bottle of water: Charles's Value Gilberto's Costs Value of first bottle: $10 Cost of first bottle: $1 Value of second bottle: $7 Cost of second bottle: $3 Value of third bottle: $3 Cost of third bottle: $7 Value of fourth bottle: $1 Cost of fourth bottle: $10 The following table shows their respective supply and demand schedules: Price Quantity Supplied Quantity Demanded More than $10 4 $7 to $10 3 1 $3 to $7 2 2 $1 to $3 1 3 $1 or less 4

8. Consumer and Producer Surplus Suppose Gilberto is the only seller in the market for bottled water and Charles is the only buyer. The following lists show the value Charles places on a bottle of water and the cost Gilberto incurs to produce each bottle of water: Charles's Value Gilberto's Costs Value of first bottle: $10 Cost of first bottle: $1 Value of second bottle: $7 Cost of second bottle: $3 Value of third bottle: $3 Cost of third bottle: $7 Value of fourth bottle: $1 Cost of fourth bottle: $10 The following table shows their respective supply and demand schedules: Price Quantity Supplied Quantity Demanded More than $10 4 $7 to $10 3 1 $3 to $7 2 2 $1 to $3 1 3 $1 or less 4

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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