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It is a hot day and Bert is thirsty. Here is the value he places on each successive bottles of water. 1st bottle $7 2nd
It is a hot day and Bert is thirsty. Here is the value he places on each successive bottles of water.
1st bottle | $7 |
2nd bottle | $5 |
3rd bottle | $3 |
4th bottle | $1 |
(a) If the market price of water is $3, how many bottles will Bert buy?
(b) What is the consumer surplus on all the bottles Bert buys?
Show your work/explain your answer for both parts (a) and (b).
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