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Suppose that all of the numbered diamonds and spades from a deck of cards (excluding Ace, King, Queen, and Jack) are used to set up a market. The diamonds determine demands, e. g. a 10 represents a buyer with a redemption value of $10. Similarly, the spades determine supply. There are nine buyers and nine sellers, each with a single card.
a) Graph supply and demand, and derive the competitive price and quantity predictions.
b) What is the predicted effect of removing the 3, 4, and 5 of spades
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Suppose that all of the numbered diamonds and spades from a deck of cards (excluding Ace, King, Quee...
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