Suppose there is a Shift in the Supply Curve from S to S. Price (dollars) 5.00...

 

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Suppose there is a Shift in the Supply Curve from S to S. Price (dollars) 5.00 4.50 4.00 3.50 3.00 2.50 2.00 Market for Bottled Water 1.50 1.00 0.50 200 400 S 5, 600 800 1,000 Quantity (bottles) 1,200 How much of the increase in consumer surplus was additional consumer surplus for people who would have boug bottled water at $2 per bottle anyway? Suppose there is a Shift in the Supply Curve from S to S. Price (dollars) 5.00 4.50 4.00 3.50 3.00 2.50 2.00 Market for Bottled Water 1.50 1.00 0.50 200 400 S 5, 600 800 1,000 Quantity (bottles) 1,200 How much of the increase in consumer surplus was additional consumer surplus for people who would have boug bottled water at $2 per bottle anyway?

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The shift lead to the quantity increased from 600 to 700 but one has to find the ... View the full answer