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It is hot day, and Bert is thirsty. Here is the value he places on each bottle of water:
Value of first bottle $7
Value of second bottle $5
Value of third bottle $3
Value of fourth bottle $1
a. From this imformation, derive Bert's demand schedule. Graph his demand curve for bottle water.
b. If the price of a bottle of water is $4 how many bottles does Bert by? How much consumer surplus does Bert get from his purchase? Show Bert's consumer surplus in a graph.
c. If the price falls to $2, how does quanity demand change? How does Bert's consumer surplus change? How does Bert's consumer surplus change? Show these changes in a graph.
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