A typical consumer's demand for the Happy Beverage Company's product looks like that in Figure 2-5(a).

If the firm charges a price of $1 per liter, how much revenue will the firm earn and how much consumer surplus will the typical consumer enjoy? What is the most a consumer would be willing to pay for a bottle containing exactly 4 liters of the firm's beverage?

FIGURE 2-5 Consumer Surplus Price per A Price A liter Consumer surplus D D > Quantity > Quantity 0 1 2 3 4 5 (liters) 0 (a)