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. First unit Second unit Third unit First unit Second unit Third unit Fourth unit Buyers' Reservation Values Buyer 1 Buyer 2 65 35 50 25 25 0 Sellers' Reservation Values Seller 1 Seller 2 S 5 10 10 30 45 45 60 Buyer 3 65 35 25 16) Refer to the tables above. What is the range of equilibrium prices? What is the equilibrium quantity? A) $25 and $30; 4 units C) $35 and $45: 6 units B) $30 and $35: 5 units D) $25 and $45; 5 units 16)

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. First unit Second unit Third unit First unit Second unit Third unit Fourth unit Buyers' Reservation Values Buyer 1 Buyer 2 65 35 50 25 25 0 Sellers' Reservation Values Seller 1 Seller 2 S 5 10 10 30 45 45 60 Buyer 3 65 35 25 16) Refer to the tables above. What is the range of equilibrium prices? What is the equilibrium quantity? A) $25 and $30; 4 units C) $35 and $45: 6 units B) $30 and $35: 5 units D) $25 and $45; 5 units 16)

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.7P

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