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The following table shows bottled water demand and supply for a particular city:
PRICE DEMAND SUPPLY
$1.10 8,000 -0-
$1.15 7,000 1,000
$1.20 6,000 2,000
$1.25 5,000 3,000
$1.30 4,000 4,000
$1.35 3,000 5,000
$1.40 2,000 6,000
$1.45 1,000 7,000
$1.50 -0- 8,000
a) Draw supply and demand curve. Identify equilibrium price and quantity.
b) Identify Consumer Market Surplus and Producer Market Surplus.
c) Using your graph, calculate the dollar value of consumer surplus and dollar value of producer surplus.
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