cro Home Grades Personalized Reviews Discussion Course Mater

cro Home Grades Personalized Reviews Discussion Course Materials Bonus to Exam1 part2 (Analyzing equilibrium price and quantity) Graded Assignment | Back to Assignment Due Wednesday 01.27.16 at 11:45 PM Eleven of your friends are about to take a course, and each one is have already taken the course and are wiling to comsider selling their interested in buying one used textbook. Another 11 of your thiends their books. Suppose that each ftriend tells you his or her buyer value or seller cost. They aik 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 tm increasing order so you can plot a supply curve. Buyer Buyer Valun Seller Stuart Seller Cost Charles $22 $20 $18 $16 $14 $12 $10 $8 16 $6 to $10 $12 $14 316 sam Todd Saul Jordan $24 1.1. If you set a price ot $17 per book, how many buyers would want to buy a book? A. S C. S D. 4 E. S !

Solution

Question:- If you set a price at $17 per book, how many buyers would want buy a book?

A. 8

B. 7

C. 6

D. 4

E. 5

Solution:-

            If we set the Price at $17, then all those buyers would want to buy the textbooks whose willingness to pay is greater than or equal to $17.

            In this case, the first four buyers’ (Charles, Anand, Sam & Mica) willingness to pay is greater than the market price. Therefore the four of them can buy textbooks.