Suppose that in a competitive market for ukuleles, three buyers (Peter, Paul, and Mary) have the marginal benefit (MB) schedules below.QuantityMB—PeterMB—PaulMB—Mary11501401302120110100390807046050405302010If the equilibrium price is $80, calculate the quantity purchased by each buyer.

Marginal benefit: It is the maximum price the consumer is willing to pay for a particular quantity…

Answered: Suppose that in a competitive market…

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter4: Markets In Action

Section: Chapter Questions

Problem 5SQP

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Suppose that in a competitive market for ukuleles, three buyers (Peter, Paul, and Mary) have the marginal benefit (MB) schedules below.

Quantity	MB—Peter	MB—Paul	MB—Mary
1	150	140	130
2	120	110	100
3	90	80	70
4	60	50	40
5	30	20	10

If the equilibrium price is $80, calculate the quantity purchased by each buyer.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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