recitation. The same assumptions apply each agent may make only one transaction

Question

recitation. The same assumptions apply each agent may make only one transaction and fractions of a unit may not be traded. following table represents buyers' values and sellers' costs fiom a maiket experiment like the one you did in Seller's Cost 270 100 220 320 150 Seller's ID Buyer's ID Buyer's Value 350 400 250 100 AUSOSO120 7. Using the data from the market esperumens, which of the following is closest to the total surplus generated in this market? A) 160 B) 410 C) 530 D) 950 8. Using the data from the market experment in the table above. which of the following is closest to the minimum deadweight loss that would arse from a pice floor set at $300 A) 0 B) 30 C) 100 D) 250

Explanation / Answer

7. Total surplus = Consumer surplus + Producer surplus

= (350 - 270) + (400 - 100) + (250 - 220) + (320 - 100) + (150 - 120)

= 80 + 300 + 30 + 120 + 30 = $ 560

so, answer is C) $ 530

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