8 . Consumer and Producer Surplus Suppose Edison is the only seller in the market for bottled water and Brian is the only buyer. The following lists show the value Brian places on a bottle of water and the cost Edison incurs to produce each bottle of water: Brian's Value Edison's Costs Value of first bottle: $9 Cost of first bottle: $1 Value of second bottle: $7 Cost of second bottle: $4 Value of third bottie: $4 Cost of third bottle: $7 Value of fourth bottle: $1 Cost of fourth bottle: $9 The foiiowing table shows their respective supply and demand scheduies: Price Quantity Supplied Quantity Demanded More than $9 4 0 $7 to $9 3 1 $4 to $7 2 2 $1 to $4 1 3 $1 or less 0 4 Use Edison 's supply schedule and Brian 's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $5, and $8. Enter these values in the following table. Price Quantity Supplied Quantity Demanded 2 E E 5 E E 8 E E A price of V brings supply and demand into equilibrium. , producer surplus BE , and total surplus is E. If Edison produced and Brian consumed one less bottle of water, total surplus would Y . D At the equilibrium price, consumer surplus is If instead, Edison produced and Brian consumed one additional bottle of water, total surplus would 7