It is a hot day, and Kaleem is very thirsty. Here is the value he places on a bottle of water:
Value of first bottle = Rs. 7
Value of second bottle = Rs. 5
Value of third bottle = Rs. 3
Value of fourth bottle = Rs. 1
From this information, derive Kaleem's demand schedule.
If the price of a bottle of water is $4, how many bottles does Kaleem buy? How much consumer surplus does Kaleem get from his purchases?
If the price falls to $2, how does quantity demanded change? How does Kaleem's consumer surplus change?