Attempts Average / 4 4. Problems and Applications Q4 It is a hot day, and Andrew 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: From this information, complete the following table by deriving Andrew's demand schedule. Price Quantity Demanded More than $7 $5.01 to $7 $3.01 to $5 $1.01 to $3 $1 or fewer Based on Andrew's willingness to pay, plot Andrew's demand curve as a step function on the following graph using blue points (circle symbol) beginning at a quantity of 0 bottles of water. ? 10 Andrew's Demand Price = $4 Price of Water Quantity Purchased A Consumer Surplus Quantity of Water Suppose the price of a bottle of water is $4. Use the black line (plus symbol) to draw a price line at $4. Next use the grey point (star symbol) to indicate how many bottles of water Andrew will buy at that price. Finally, use the green point (triangle symbol) to shade the area that represents Andrew's consumer surplus from his purchases. In this case, Andrew receives $ in consumer surplus from his water purchase. If the price falls to $2, Andrew now buys bottles of water. This_ his consumer surplus to $