uiz&iquiz; probGuid MCPLCOA801010000003b2a38500600008kctx- jean-marcgandonou-003
ID: 1124151 • Letter: U
Question
uiz&iquiz; probGuid MCPLCOA801010000003b2a38500600008kctx- jean-marcgandonou-0034 Home GradesPersonalized Reviews Course Materials Extra Credit Analyzing Equilibrium Price and Quantity Graded Assignment | Back to Assignment Due Tuesday 12.12.17 at 11:15 PM Eleven of your friends are about to take a course, and each one is interested in buying one used textbook. Another 11 of your friends have already taken the course and are willing to consider selling their books. Suppose that each friend tells you his or her buyer value or seller cost. They ask you to figure out how to arrange all the trades. Because you have taken an economics course, you sort the buyer values in decreasing order so you can plot a demand curve and you sort the seller costs in increasing order so you can plot a supply curve. Buyer Buyer Value Charles Anand Sam Seller Stuart $24 $22 $20 110 $16 Cheryl Christine Sau Seller Cost 14 $6 $8 $10 $12 $14 116 $28 Todd Peter Sven $10 Rajeev Jordan $6 Ramin $22 124 J0e 1.3. If you set a price or $17 per book for the trades among your friends: O A. There will be a shortage of books B. There will be a surplus of books. O C. The macke will clear , thin Privicy Notice . Securty NeticeExplanation / Answer
Ans is B
If you set the price as 17, no of buyers=4. I.e. When buyers value is greater than 17
No. Of sellers=7
Thus no. Of sellers are greater than buyer, there is an excess supply and there will surplus of books in the market.
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