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Suppose Edison is the only seller in the market for bottled water and Brian is the only buyer. The following lists show the value
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 Value of first bottle: $9 Value of second bottle: $7 Value of third bottle: $4 Value of fourth bottle: $1 The following table shows their respective supply and demand schedules: Price More than $9 $7 to $9 $4 to $7 $1 to $4 $1 or less Quantity Supplied Quantity Demanded 2 0 WN 2 Edison's Costs Cost of first bottle: $1 Cost of second bottle: $4 Cost of third bottle: $7 Cost of fourth bottle: $9 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 5 8 A price of brings supply and demand into equilibrium. At the equilibrium price, consumer surplus is S producer surplus is S If Edison produced and Brian consumed one less bottle of water, total surplus would. and total surplus is $ If instead, Edison produced and Brian consumed one additional bottle of water, total surplus would
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