uestion 1

Roland has started his own line of perfumes. Each of his bottles of perfume is priced $5. The table shows his supply plan with marginal cost, how many bottles of perfumes should he produce?

Bottles of Perfume	Marginal Cost ($)
1	5
2	8
3	10
4	6
5	2

Question 2

David wants to buy a new laptop because he loves gaming. He goes online to look for options, mentally deciding that his budget is $2,500. When he goes on line he sees three laptops, A, B, and C. Laptop A costs $4,000, Laptop B costs $2,000, and Laptop C costs $1,500.

1. What is his economic surplus for each laptop?
2. Based on economic surplus, which laptop should he buy?

Question 3

Fei, Morgan and Lakesha are all in the market for new Levi's jeans. The marginal benefits for each pair of Jeans per year for each of them is provided in the following table.

a. If the price of a pair of Levi's jeans is $32, how many pairs of jeans will each person purchase?

b. How much consumer surplus does each of them receive from the last pair of jeans purchased?

c. How much consumer surplus will each of them receive for each of the pairs they buy at a price of $32?

Quantity	Fei	Morgan	Lakesha
1	$85	$40	$90
2	$60	$32	$75
3	$32	$24	$55
4	$20	$16	$32
5	$15	$8	$25

Question 4

Beverly is planning a summer vacation and is about to book a hotel room online for $149 a night. However, when she gets to the reservation screen, you are informed that she will be charged an additional $30 a night in various taxes that she has to pay to the hotel.

1. Between Beverly and the hotel, who is carrying the larger share of the

economic burden of the taxes?

1. What ultimately determines whether Beverly or the hotel bears the majority of the economic burden?