Back to Assignment Attempts Average / 4 5. Problems and Applications Q5 Carlos owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water; Cost of first bottle: $2 Cost of second bottle: $4 Cost of third bottle: $6 Cost of fourth bottle: $8 From this information, complete the following table by deriving Carlos's supply schedule, Price Quantity Supplied More than $8 $6 to $8 $4 to $6 $2 to $4 $2 or less Based on Carlos's willingness to sell, plot his supply curve as a step function on the following graph using the orange points (square symbol). Be sure to plot your first point at (0, 0). ? Carlos's Supply Price = $5 Price of Water Quantity Sold Producer Surplus Quantity of Water Suppose the price of a bottle of water is $5. Use the black line (plus symbol) to draw a price line at $5. Next use the grey point (star symbol) to indicate how many bottles of water Carlos will produce and sell at that price. Finally, u hond symbol) to shade the area that represents Carlos's producer surplus. In this case, Carlos receives $ in producer surplus from his water sales. If the price rises to $7, Carlos now sells |bottles of water. This his producer surplus to S