HW4_SP09 - Lai ECO 201 HW 4 Due: Student's Name:_ Chapter 7...

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Lai ECO 201 HW 4 Due: Student’s Name:_______________________ Chapter 7 “Principles of Microeconomics” by Mankiw, 5 th edition. Type your homework. Show necessary steps and reasoning. You may hand draw diagram if you prefer. 4. It’s a hot day, and Bert 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 a. From this information, derive Bert’s demand schedule. Graph his demand curve for bottled water
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Lai 5. Ernie owns a water pump. Because pumping large amounts of water is harder than pumping small amounts, the cost of producing a bottle of water rises as he pumps more. Here is the cost he incurs to produce each bottle of water a. From this information, derive Earnie’s supply schedule. Graphs his supply curve for bottled water 6. Consider a market in which Bert from Problem 4 is the buyer and Ernie from Problem 5 is the seller. a.
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HW4_SP09 - Lai ECO 201 HW 4 Due: Student's Name:_ Chapter 7...

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