Based on Jake's willingness to pay, plot Jake's demand curve as a step function on the following graph using blue points (circle symbol) begl NU JI quantity of 0 bottles of water. 10 Jake's Demand Price = $5 Quantity Purchased Consumer Surplus 4 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 Jake will buy at that price. Finally, use the green point (triangle symbol) to shade the area that represents Jake's consumer surplus from his purchases. In this case, Jake receives S in consumer surplus from his water purchase. Price of Water

Economists define normal goods as having a positive income elasticity. We can divide normal goods into two types: Those whose income elasticity is less than one and those whose income elasticity is greater than one. Think about products that would fall into each category. Can you come up with a name for each category?

If a 10 decrease in the price of one product that you buy causes an 8 increase in quantity demanded of that product, will another 10 decrease in the price cause another 3 increase (no more and no less) in quantity demanded?

Problems 7-4 It is a hot day, and Larry is thirsty. Here is the value he places on a bottle of water: Value of first bottle: $7 Value of second bottle: $5 Value of third bottle: $3 Value of fourth bottle: $1   From this information, complete the following table by deriving Larry’s demand schedule. Price Quantity Demanded More than $7   $5.01 to $7   $3.01 to $5   $1.01 to $3   $1 or fewer

1)It is a hot day, and Carlos is thirsty. Here is the value he places on a bottle of water: Value of first bottle: $9 Value of second bottle: $7 Value of third bottle: $4 Value of fourth bottle: $1 From this information, complete the following table by deriving Carlos’s demand schedule. Price Quantity Demanded More than $9   $7.01 to $9   $4.01 to $7   $1.01 to $4   $1 or fewer   2)Based on Carlos's willingness to pay, plot Carlos's demand curve as a step function on the following graph using blue points (circle symbol) beginning at a quantity of 0 bottles of water. Please do the graph    3)Suppose the price of a bottle of water is $6. Use the black line (plus symbol) to draw a price line at $6. Next use the grey point (star symbol) to indicate how many bottles of water Carlos will buy at that price. Finally, use the green point (triangle symbol) to shade the area that represents Carlos's consumer surplus from his…

An individual sets aside a certain amount of his income per month to spend on his two hobbies, collecting wine and collecting books. Given the information below, illustrate the demand curve for wine. Wine Price Book Price $15 $12 $30 $12 $60 $12 Books 100- 90- Wine 40 20 10 LOTB FO- Books 50 50 50 80- 70- 60- 50- 40- 30- 20- 10- 0- 0 10 20 30 40 50 60 70 80 90 100 Wine PCG Budget $1200 $1200 $1200 N Using the three-point curved line drawing tool, draw the demand curve for wine in the figure to the right. Label this curve 'Demand". Carefully follow the instructions above, and only draw the required object. CULD

Refer to the accompanying figures. If Mallory and Rick are the only two consumers in this market, then the market demand for soda will be 90 cans per month when the price of a can of soda is Mallory's Demand for Soda Price ($/can) 1.501 1.25 1.00 0.75 0.50 0.25 0 0 10 20 30 40 50 60 70 Quantity (cans of soda/month) Select one: O a. $1.50 O b. $0.50 O c. $1.25 O d. $0.75 Price ($/can) 1.50 1.25 1.00 0.75 0.50 0.25 0 0 Rick's Demand for Soda 10 20 30 40 50 60 70 Quantity (cans of soda/month)

An individual sets aside a certain amount of his income per month to spend on his two hobbies, collecting wine and collecting books. Given the information below, illustrate the demand curve for wine. 70- TTTTI Wine Price Book Price Wine Вooks Budget $1200 $1200 60- $15 $12 $12 $12 40 50 $30 $60 20 50 50- 10 50 $1200 40- 100- 90- 30- 80- 70- 20- 60- A 50- PCC 10- 40- 30- 0- 20- 10 20 30 40 50 10- Wine 0+ 0 10 20 30 40 50 60 70 80 90 100 Wine Using the three-point curved line drawing tool, draw the demand curve for wine in the figure to the right. Label this curve 'Demand'. Carefully follow the instructions above, and only draw the required object. Books Price

4 Refer to Table below. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. At a price of $6, the quantity demanded in the market would be   Kona Coffee Price per lb. (dollars) Luke's Quantity Demanded (lbs.) Ravi's Quantity Demanded (lbs.) Rest of Market Quantity Demanded (lbs.) Market Quantity Demanded (lbs.) $10    3   0   23       8    9   3   32       6  14   7   68       5 18 12   85       4 22 18 110   a. 123 lbs b. 89 lbs c. 36 lbs d. 68 lbs

Question 3