Problem
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
|
1. If the market price of water is $3, how many bottles will Bert buy?
2. What is the consumer surplus on all the bottles Bert buys?