-The Table Above Gives the Demand and Supply Schedules for Bottled

question 46

Essay

-The table above gives the demand and supply schedules for bottled spring water in Springsboro. Assume that the only people who benefit from spring water are the people who drink it and the only people who bear the cost of bottled spring water are the people who produce it.
a) Draw the market demand and market supply curves. What are the equilibrium price and equilibrium quantity of spring water? Is this equilibrium efficient? Explain.
b) What is the maximum price that consumers are willing to pay for the 400th bottle? What is the minimum price that producers are willing to accept for the 400th bottle? Explain.
c) Are 400 bottles a day less than or greater than the efficient quantity? Explain your answer.
d) If the market for spring water is efficient, what is the consumer surplus? Show it on your graph. What is the producer surplus? Show it on your graph.
e) If spring water bottlers produce 400 bottles a day, is there a deadweight loss? If yes, what is it? Explain your answer using your graph.

---

Definitions:

Procedural Rules

Guidelines that govern the legal processes in court cases, including how legal documents are filed and how court proceedings are conducted.

State Court

A court that is part of a state's judicial system, handling matters within that state according to state laws.

Federal Court

Courts established under the federal government's authority, dealing with issues under federal law or between states.

Diversity of Citizenship

A condition for federal court jurisdiction where the parties involved are citizens of different U.S. states or a foreign country.