If a bottle of hand-crafted ginger beer costs $4, how many bottles

Question # 00695781 Posted By: dr.tony Updated on: 06/08/2018 08:32 AM Due on: 06/08/2018
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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 (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.

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  1. Tutorial # 00695403 Posted By: dr.tony Posted on: 06/08/2018 08:33 AM
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