Question
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?
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Price Theory and Applications
Authors: Steven Landsburg
9th edition
1285423526, 978-1285947877, 1285947878, 978-1285423524
