EBK FOUNDATIONS OF ECONOMICS
8th Edition
ISBN: 9780134516196
Author: BADE
Publisher: PEARSON CO
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Chapter 6, Problem 11SPPA
To determine
To state:
The method used by Company E to allocate goods and the way an auction can affect the
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It is a hot day and Bert is thirsty. Here is the value he places on a bottle of water:
Bottle of Water
Value
Value of first bottle
$7
Value of second bottle
$5
Value of third bottle
$3
Value of fourth bottle
$1
From this information, derive Bert’s demand schedule.
Graph his demand curve for bottled water.
If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases? Show Bert’s consumer surplus in your graph.
If the price falls to $2, how does quantity demand change? How does Bert’s consumer surplus change? Show these changes in your graph.
5-4 The table below demonstrates each consumer’s willingness to pay for a product.
Construct a step graph of the five consumers’ willingness to pay.
Now calculate consumer surplus for each consumer when the price is $10. What is the total consumer surplus at this price? Who will buy the product?
Q 2::: It is a hot day, and Bert is thirsty. Here is the value he places on a bottle of water:
Value of first bottle $7
Value of second bottle 5
Value of third bottle 3
Value of fourth bottle 1
a. From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water.
b. If the price of a bottle of water is $4, how many bottles does Bert buy? How much consumer surplus does Bert get from his purchases? Show Bert’s consumer surplus in your graph.
c. If the price falls to $2, how does quantity demanded change? How does Bert’s consumer surplus change? Show these changes in your graph.
Chapter 6 Solutions
EBK FOUNDATIONS OF ECONOMICS
Ch. 6 - Prob. 1SPPACh. 6 - Prob. 2SPPACh. 6 - Prob. 3SPPACh. 6 - Prob. 4SPPACh. 6 - Prob. 5SPPACh. 6 - Prob. 6SPPACh. 6 - Prob. 7SPPACh. 6 - Prob. 8SPPACh. 6 - Prob. 9SPPACh. 6 - Prob. 10SPPA
Ch. 6 - Prob. 11SPPACh. 6 - Prob. 12SPPACh. 6 - Prob. 1IAPACh. 6 - Prob. 2IAPACh. 6 - Prob. 3IAPACh. 6 - Prob. 4IAPACh. 6 - Prob. 5IAPACh. 6 - Prob. 6IAPACh. 6 - Prob. 7IAPACh. 6 - Prob. 8IAPACh. 6 - Prob. 9IAPACh. 6 - Prob. 1MCQCh. 6 - Prob. 2MCQCh. 6 - Prob. 3MCQCh. 6 - Prob. 4MCQCh. 6 - Prob. 5MCQCh. 6 - Prob. 6MCQCh. 6 - Prob. 7MCQ
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