Problem
1. Suppose that at three units purchased, marginal utility is $8 and total utility is $30. If the marginal utility of the fourth unit purchased is $6, how much is the total utility of four units?
2. You're in the desert on an extremely hot day and become quite thirsty. Luckily you come upon a stand where they're selling bottled water. You would be willing to pay $10 for the first bottle, $5 for the second bottle, and $1 for the third. Luckily they're charging just a dollar. (a) How many bottles do you buy? (b) How much is your marginal utility from the third bottle? (c) How much is the total utility you will get from the three bottles? (d) How much is your consumer surplus?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.