8 . Consumer and Producer Surplus Suppose Clancy Is the only seller In the market for bottled water and Alex Is the only buyer. The followlng Ilsts show the value Alex places on a bottle of water and the cost Clancy incurs to produce each bottle of water: Alex's 1llalue Clancy's Casts lu'alue of rst bottle; $9 Cost of first bottle: $1 Value of second bottle: $Il Cost of seoond bottle: $4 Value of third bottle: $4 Cost of third bottle: $7 Value of fourth bottle: $1 Cost of fourth bottle: $9 The followlng table shows their respective supply and demand schedules: Price Quantity Supplied Quantity Demanded More than $9 $3- on $9 $4 to $7 $1 to $4 $1 or less Use Clancy's supply schedule and Alex's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $5, and $8. Enter these values in the followlng table. Price Quantity Supplied Quantity Demanded E C l4 I: l l A price of V brings supply and demand into equilibrium. At the equilibrium price, consumer surplus is , producer surplus is ' , and total surplus is If Clancy produced and Alex consumed one less bottle of water, total surplus would V . If instead, Clancyr produced and Alex consumed one additional bottle of water, total surplus would 7