PLEASE ANSWER HIGHLIGHTED AREAS AND EXPLAIN IN LAYMAN'S TERMS.

PLEASE ANSWER ALL AND NOT JUST SOME

8 . Consumer and Producer Surplus Suppose Alex is the only seller in the market for bottled water and Raphael is the only buyer. The following lists show the value Raphael places on a bottle of water and the cost Alex incurs to produce each bottle of water: Raphael's Value Alex's Costs Value of first bottle: Cost of first bottle: $1 Value of second bottle: $7 Cost of second bottle: $4 Value of third bottle: Cost of third bottle: $7 Value of fourth bottle: $1 Cost of fourth bottle: $9 The following table shows their respective supply and demand schedules: Price Quantity Demanded Quantity Supplied $1 or less $1 to $4 $4 to $7 $7 to 59 A W N More than $9 Use Alex's supply schedule and Raphael's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $5, and $8. Enter these values in the following table. Quantity Demanded Quantity Supplied 2 A price of brings supply and demand into equilibrium. $2 $5 At the equilibrium price, consumer surplus is $ : producer surplus is $ and total surplus is $If Alex produced and Raphael consumed one less bottle of water, total surplus would fall rise If instead, Alex produced and Raphael consumed one additional bottle of water, total surplus would rise fall