8 . Consumer and Producer Surplus Suppose Musashi is the only seller in the market for bottled water and Jacques is the only buyer. The following lists show the value Jacques places on a bottle of water and the cost Musashi incurs to produce each bottle of water: Jacques's Value Musashi's Costs Value of first bottle: $10 Cost of first bottle: $1 Value of second bottle: $7 Cost of second bottle: $3 Value of third bottle: $3 Cost of third bottle: $7 Value of fourth bottle: $1 Cost of fourth bottle: $10 The following table shows their respective supply and demand schedules: Price Quantity Supplied Quantity Demanded More than $10 4 O $7 to $10 3Module Four Value of second bottle: $7 Cost of second bottle: $3 Value of third bottle: $3 Cost of third bottle: $7 Value of fourth bottle: $1 Cost of fourth bottle: $10 The following table shows their respective supply and demand schedules: Price Quantity Supplied Quantity Demanded More than $10 O $7 to $10 W $3 to $7 N N $1 to $3 $1 or less 0 A Use Musashi's supply schedule and Jacques's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $6, and $9. Ente these values in the following table. Price Quantity Supplied Quantity DemandedModule Four Quiz Use Musashi's supply schedule and Jacques's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $6, and $9. Enter these values in the following table. Price Quantity Supplied Quantity Demanded 2 6 9 A price of $6 _ brings supply and demand into equilibrium. At the equilibrium price, consumer surplus is $5 , producer surplus is $8 , and total surplus is $13 If Musashi produced and Jacques consumed one less bottle of water, total surplus would fall If instead, Musashi produced and Jacques consumed one additional bottle of water, total surplus would fall Grade It Now Save & Continue