Question: Graphical and Mathematical Exercise: Consider a person A, who is extremely thirsty. His maximum willingness to pay chart is given below.
From his fifth glass onwards, A is not willing to pay any money.
a) Construct A’s demand curve from the above information. (Put the # of glasses demanded on the x-axis, and the price of a glass of water on the y-axis.)
b) Suppose the price charged for a glass of water is $4/glass. How many glasses will A buy? Calculate (and show in a graph) A’s consumer surplus from this transaction.
ORDER YOUR ORIGINAL PAPER
Request for a custom paper or place a new order
THE BEST CUSTOM ESSAY WRITING SERVICE AT YOUR FINGERTIPS
Forget All Your Assignment & Essay Related Worries By Simply Filling Order Form
