Use the willingness-to-pay information about the buyers (Ariel, Bridget, and Connie) and the willingness-to-accept information about the sellers (Daniel, Etienne, and Franklin) below to construct a "stepped" demand and supply diagram like this one from my
notes on Unit #7. (You'll also have one question to answer below.)
Willingness-To-Pay information
Ariel Bridget Connie
Willingness-to-pay for the 1" widget $8 $11 $9
Willingness-to-pay for the 2nd widget $6 $9 $7
willingness-to-pay for the 3rd widget $4 $7 $6
willingness-to-pay for the 4th widget $3 $5 $4
willingness-to-pay for the 5th widget $1 $2 $3
Willingness-To-Accept information
Daniel Etienne Franklin
willingness-to-accept for the 1st widget $1 $2 $3
Willingness-to-accept for the 2nd widget $3 $4 $5
willingness-to-accept for the 3rd widget $6 $6 $7
willingness-to-accept for the 4th widget $9 $9 $10
willingness-to-accept for the 5th widget $12 $11
$12
Note that there are multiple versions of these tables, so if you submit and then try again, you may get an entirely different table.
(To create the curves, you'll first need to create the demand and supply schedules as I did in my notes on Unit #7. Once you've got
the demand and supply schedules, you can refer to this tutorial to see how to construct the curves.)
Draw by hand, or use a software program, to create the demand and supply schedules based on these tables. Then, use the
Assessment called "GA: Consumer and Producer Surplus -- PART 2 to upload your drawing. Note that these tables will not show up
in that Assessment; it is simply there so you have somewhere to upload the drawing.
Your drawing should have the following things clearly labeled: the demand curve, the supply curve, the area of consumer surplus,
and the area of producer surplus.
So here's the question you have to answer before you submit this part:
What's the dollar value of the total surplus (consumer surplus plus producer surplus)?