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

Vale 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.