It is a hot day, and Bert is thirsty. Here is the value he places on each bottle of water:
\begin{align*}
\mathrm{Value \, of \, first \,bottle} \quad \$7 \\
\mathrm{Value \, of \, second \,bottle} \quad \$5\\
\mathrm{Value \, of \, third \,bottle} \quad \$3\\
\mathrm{Value \, of \, fourth \,bottle} \quad \$1\\
\end{align*}
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.