It is a hot day, and Gnter is thirsty. Here is the value he places on a

It is a hot day, and Günter is thirsty. Here is the value he places on a 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 information, derive Günter’s demand schedule. Graph his demand curve for bottled water.

b. If the price of a bottle of water is €4, how many bottles does Günter buy? How much consumer surplus does Günter get from his purchases? Show Günter’s consumer surplus in your graph.

c. If the price falls to €2, how does quantity demanded change? How does Günter’s consumer surplus change? Show these changes in your graph.