Based on Jake's willingness to pay, plot Jake's demand curve as a step function on the following graph using blue points (circle symbol) begl NU JI quantity of 0 bottles of water. 10 Jake's Demand Price = $5 Quantity Purchased Consumer Surplus 4 Quantity of Water Suppose the price of a bottle of water is $5. Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Jake will buy at that price. Finally, use the green point (triangle symbol) to shade the area that represents Jake's consumer surplus from his purchases. In this case, Jake receives S in consumer surplus from his water purchase. Price of Water
Based on Jake's willingness to pay, plot Jake's demand curve as a step function on the following graph using blue points (circle symbol) begl NU JI quantity of 0 bottles of water. 10 Jake's Demand Price = $5 Quantity Purchased Consumer Surplus 4 Quantity of Water Suppose the price of a bottle of water is $5. Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Jake will buy at that price. Finally, use the green point (triangle symbol) to shade the area that represents Jake's consumer surplus from his purchases. In this case, Jake receives S in consumer surplus from his water purchase. Price of Water
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
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Problem 7PA: Maria has decided always to spend one third of her income on clothing. a. What is her income...
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Question
![It is a hot day, and Jake is thirsty. Here is the value he places on a bottle of water:
Value of first bottle:
$8
Value of second bottle: $6
Value of third bottle:
$4
Value of fourth bottle: $2
From this information, complete the following table by deriving Jake''s demand schedule.
Price
Quantity Demanded
More than $8
$6.01 to $8
$4.01 to $6
$2.01 to $4
$2 or fewer](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F795e60d9-3b88-497f-9ce1-b8440a91a1ae%2F317e146e-5b1e-42d8-af3e-4b5cc5498b6f%2Fr90znp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:It is a hot day, and Jake is thirsty. Here is the value he places on a bottle of water:
Value of first bottle:
$8
Value of second bottle: $6
Value of third bottle:
$4
Value of fourth bottle: $2
From this information, complete the following table by deriving Jake''s demand schedule.
Price
Quantity Demanded
More than $8
$6.01 to $8
$4.01 to $6
$2.01 to $4
$2 or fewer
![Based on Jake's willingness to pay, plot Jake's demand curve as a step function on the following graph using blue points (arcle symbol) beginning at a
quantity of 0 bottles of water.
10
Jake's Demand
Price = $5
Quantity Purchased
3.
Consumer Surplus
21
13
Quantity of Water
Suppose the price of a bottle of water is $5.
Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Jake will buy
at that price. Finally, use the green point (triangle symbol) to shade the area that represents Jake's consumer surplus from his purchases.
In this case, Jake receives S
in consumer surplus from his water purchase.
If the price falls to $2, Jake now buys
bottles of water. This
his consumer surplus to S
Price of Water](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F795e60d9-3b88-497f-9ce1-b8440a91a1ae%2F317e146e-5b1e-42d8-af3e-4b5cc5498b6f%2F6lhj9ug_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Based on Jake's willingness to pay, plot Jake's demand curve as a step function on the following graph using blue points (arcle symbol) beginning at a
quantity of 0 bottles of water.
10
Jake's Demand
Price = $5
Quantity Purchased
3.
Consumer Surplus
21
13
Quantity of Water
Suppose the price of a bottle of water is $5.
Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Jake will buy
at that price. Finally, use the green point (triangle symbol) to shade the area that represents Jake's consumer surplus from his purchases.
In this case, Jake receives S
in consumer surplus from his water purchase.
If the price falls to $2, Jake now buys
bottles of water. This
his consumer surplus to S
Price of Water
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