Multiple Choice
The tables below show reservation values of buyers and sellers in a market. There are three buyers and two sellers. Each buyer's reservation values for the fourth unit and above are negative, and each seller can produce at most four units.
-Refer to the tables above.Suppose that the price is $34 per unit.What is the sum of the three buyers' surplus? What is the sum of the two sellers' surplus? What is the social surplus?
A) Sum of buyers' surplus = $77; Sum of sellers' surplus = $115; Social surplus = $187
B) Sum of buyers' surplus = $92; Sum of sellers' surplus = $95; Social surplus = $187
C) Sum of buyers' surplus = $66; Sum of sellers' surplus = $105; Social surplus = $171
D) Sum of buyers' surplus = $108; Sum of sellers' surplus = $78; Social surplus = $186
Correct Answer:
Verified
Correct Answer:
Verified
Q21: The following figure illustrates the demand and
Q22: The following table displays the reservation values
Q23: If a seller's reservation value for a
Q24: If restrictions on entry and exit of
Q25: The following figure represents the cost curves
Q27: After the imposition of the price controls,
Q28: The social surplus in a market is
Q29: The reservation value of a buyer reflects
Q30: Which of the following statements is true?<br>A)
Q31: Scenario: The table below lists the willingness