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st bottle: econd bottle: $5 ird bottle: $3 urth bottle: $1 Cost of first bottle: $1 Cost of second bottle: $3 Cost of third bottle: $5 Cost of fourth bottle: $7

st bottle: econd bottle: $5 ird bottle: $3 urth bottle: $1 Cost of first bottle: $1 Cost of second bottle: $3 Cost of third bottle: $5 Cost of fourth bottle: $7

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Suppose Andrew is the only seller in the market for bottled water and Sam is the only buyer. The following lists show the value Sam places on a bottle of water and the cost Andrew incurs to produce each bottle of water: Sam's Value Value of first bottle: $7 Value of second bottle: $5 Value of third bottle: $3 Value of fourth bottle: $1 Price $1 or less $1 to $3 $3 to $5 $5 to $7 More than $7 The following table shows their respective supply and demand schedules: Quantity Demanded Quantity Supplied 4 3 2 1 0 OL 23 0 1 4 Andrew's Costs $1 Cost of first bottle: Cost of second bottle: $3 Cost of third bottle: $5 Cost of fourth bottle: $7
Transcribed Image Text:Suppose Andrew is the only seller in the market for bottled water and Sam is the only buyer. The following lists show the value Sam places on a bottle of water and the cost Andrew incurs to produce each bottle of water: Sam's Value Value of first bottle: $7 Value of second bottle: $5 Value of third bottle: $3 Value of fourth bottle: $1 Price $1 or less $1 to $3 $3 to $5 $5 to $7 More than $7 The following table shows their respective supply and demand schedules: Quantity Demanded Quantity Supplied 4 3 2 1 0 OL 23 0 1 4 Andrew's Costs $1 Cost of first bottle: Cost of second bottle: $3 Cost of third bottle: $5 Cost of fourth bottle: $7
Use Andrew's supply schedule and Sam's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $4, and $6. Enter these values in the following table. Price Quantity Demanded Quantity Supplied 2 4 6 10 A price of brings supply and demand into equilibrium. At the equilibrium price, consumer surplus is $ producer surplus is $ If Andrew produced and Sam consumed one less bottle of water, total surplus would I and total surplus is $ If instead, Andrew produced and Sam consumed one additional bottle of water, total surplus would
Transcribed Image Text:Use Andrew's supply schedule and Sam's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $4, and $6. Enter these values in the following table. Price Quantity Demanded Quantity Supplied 2 4 6 10 A price of brings supply and demand into equilibrium. At the equilibrium price, consumer surplus is $ producer surplus is $ If Andrew produced and Sam consumed one less bottle of water, total surplus would I and total surplus is $ If instead, Andrew produced and Sam consumed one additional bottle of water, total surplus would
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