A person is willing to pay $5 for a 1st bottle of water, $3 for a 2nd bottle of water, and $1 for a 3rd bottle of water. Suppose this person is the only consumer in this market and that the market price for water rises from $1 per bottle to $2 per bottle. Using this information, read the following statements and select the correct option(s).

Question

Answer

After the price change, consumer surplus becomes $4.

Answer

After the price change, consumer surplus from the last bottle of water purchased is $2.

Answer

Before the price change, consumer surplus was $5.

Answer

With the price change, consumer surplus increases by $3.

Crowdly

A person is willing to pay $5 for a 1st bottle of water, $3 for a 2nd bottle of ...

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