Question

Suppose Dmitri is the only seller in the market for bottled water and Antonio is the only buyer. The following lists show the value Antonio places on a bottle of water and the cost Dmitri incurs to produce each bottle of water:

	Antonio's Value
Value of first bottle:	$10
Value of second bottle:	$7
Value of third bottle:	$2
Value of fourth bottle:	$1

	Dmitri's Costs
Cost of first bottle:	$1
Cost of second bottle:	$3
Cost of third bottle:	$7
Cost of fourth bottle:	$10

The following table shows their respective supply and demand schedules:

Price	Quantity Demanded	Quantity Supplied
$1 or less	4	0
$1 to $4	3	1
$4 to $7	2	2
$7 to $9	1	3
More than $9	0	4

Use Dmitri's supply schedule and Antonio's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $5, and $8. Enter these values in the following table.

Price	Quantity Demanded	Quantity Supplied
2
6
9

A price of (2, 6, 9)  brings supply and demand into equilibrium.

At the equilibrium price, consumer surplus is __, producer surplus is __, and total surplus is__.

If Dmitri produced and Antonio consumed one less bottle of water, total surplus would (fall, rise)  .

If instead, Dmitri produced and Antonio consumed one additional bottle of water, total surplus would 

(fall, rise)  .