Look at the two tables given below, which show, respectively, the willingness to pay and willingness to accept buyers and sellers of bags of oranges. The following questions assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume market participants are those listed by name in the two tables.
Person
Maximum price willing to pay
Actual Price
Person
Minimum acceptable price
Bob
$18
10
Carlos
$2
Barb
$16
10
Courtney
$4
Bill
$14
10
Chuck
$6
Bart
$12
10
Cindy
$8
Brent
$10
10
Craig
$10
Betty
$8
10
Chad
$10
Given the equilibrium price of $10, what is the equilibrium quantity given the data above?
Look at the two tables given below, which show, respectively, the willingness to pay and willingness to accept buyers and sellers of bags of oranges. The following questions assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume market participants are those listed by name in the two tables.
|
Person |
Maximum price willing to pay | Actual Price | Person | Minimum acceptable price |
| Bob | $18 | 10 | Carlos | $2 |
| Barb | $16 | 10 | Courtney | $4 |
| Bill | $14 | 10 | Chuck | $6 |
| Bart | $12 | 10 | Cindy | $8 |
| Brent | $10 | 10 | Craig | $10 |
| Betty | $8 | 10 | Chad | $10 |
Given the equilibrium price of $10, what is the equilibrium quantity given the data above?
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Related questions
Look at the two tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of bags of oranges. For the following questions, assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume that the only market participants are those listed by name in the two tables.
| Consumers | Producers | |||||
| Person | Maximum Price Willing to Pay |
Actual Price (Equilibrium Price) |
Person | Minimum Acceptable Price | Actual Price (Equilibrium Price) |
|
| Bob | $16 | $10 | Carlos | $5 | $10 | |
| Barb | 14 | 10 | Courtney | 6 | 10 | |
| Bill | 13 | 10 | Chuck | 7 | 10 | |
| Bart | 12 | 10 | Cindy | 8 | 10 | |
| Brent | 11 | 10 | Craig | 9 | 10 | |
| Betty | 10 | 10 | Chad | 10 | 10 | |
a. Given the equilibrium price of $10, what is the equilibrium quantity given the data above?
Equilibrium quantity = ...... bag(s)
b. What if, instead of bags of oranges, the data in the two tables dealt with a public good like fireworks displays?
If all the buyers' free ride, what will be the quantity supplied by private sellers?
c. Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orange peels impose a negative externality on the public that must be rectified by imposing a $3-per-bag tax on sellers.
What is the new equilibrium price? $
What is the new equilibrium quantity?
....bag(s)
If the new equilibrium quantity is the optimal quantity, by how many bags were oranges being overproduced before?
.....bag(s)
Look at the two tables below. What is the total surplus if Bob buys a unit from Carlos? If Barb buys a unit from Courtney? If Bob buys a unit from Chad? If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved?
| Consumer Surplus | Producer Surplus | |||
| Person | Maximum Price Willing to Pay | Person | Minimum Acceptable Price | |
| Bob | $15 | Carlos | $3 | |
| Barb | 12 | Courtney | 4 | |
| Bill | 11 | Chuck | 5 | |
| Bart | 10 | Cindy | 6 | |
| Brent | 9 | Craig | 7 | |
| Betty | 8 | Chad | 8 | |
Instructions: Enter a whole number for your answer.
What is the total surplus if Bob buys a unit from Carlos?
$
Instructions: Enter a whole number for your answer.
What is the total surplus if Barb buys a unit from Courtney?
$
Instructions: Enter a whole number for your answer.
What is the total surplus if Bob buys a unit from Chad?
$
Instructions: Enter a whole number for your answer.
If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved?
$
