Question 1. Melissa buys an iPhone for $120 and gets consumer surplus of $80. a) What is her willingness to pay? b) If she had bought the iPhone on sale for $90, what would her consumer surplus have been? Question 2. It is a hot day, and Bert is thirsty. Here is the value he places on each bottle of water: Value of first bottle $7 Value of second bottle $5 Value of third bottle $3 Value 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