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1. Each day, Alice is willing to pay up to $20 for a rst cup of coffee, up to $18 for a second, and up
1. Each day, Alice is willing to pay up to $20 for a rst cup of coffee, up to $18 for a second, and up to $15 for a third. Each day, it costs Bob $11 to produce a rst cup of coffee, $13 to produce a second, and $15 to produce a third. Each day, Alice buys three cups of coffee from Bob for $15 each. One day, the government imposes a sales tax of $9 per cup of coffee. Answer the following questions, using LETTERS to represent numbers according to the following scheme: N. 1 Q. 11 R. 2 T. 12 g i W. 13 A . 5 C . 14 L. 6 B . 15 E . 7 D . 16 H . 8 G . Some other amount. K . 9 J . It is impossible to tell from M . 10 the information given. a) With the tax in place, how many cups does Alice buy from Bob each day? At what price? NEW QUANTITYz NEW PRICE: b) What is the amount of the deadweight loss due to the sales tax
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