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A college student enjoys drinking hand-crafted ginger beer Her willingness to pay for each bottle is shown in the following table Number of bottles Willingness to pay

A college student enjoys drinking hand-crafted ginger beer Her willingness to pay for each bottle is shown in the following table

Number of bottles Willingness to pay (per bottle)

1 $5

2 $4

3 $3

4 $2

5 $1

6 $0

 

1

If a bottle of hand-crafted ginger beer costs $4, how many bottles will the student buy?

~~~ bottles of hand-crafted ginger beer

 

How much consumer surplus will she enjoy? Assume that the student will purchase bottles up to, but not including, the point at which she incurs a loss of consumer surplus

~~$ in consumer surplus

 

 

 

2

If the price of a bottle falls to $3, how many bottles of hand-crafted ginger beer will she buy?

~~~ bottles of hand-crafted ginger beer

 

How much consumer surplus will she enjoy? Assume that the student will purchase bottles up to, but not including, the point at which she incurs a loss of consumer surplus

~~$ in consumer surplus

Aug 09 2020 Read more Less More

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