Business, 05.11.2020 18:30 lildebiecakes
1. Suppose there are nine sellers and nine buyers, each willing to buy or sell one unit of a good, with values {$10,$9,$8,$7,$6,$5,$4,$3,$2}. Assuming no transactions costs and a competitive market, what is the equilibrium price in this market?
2. If the government imposes a price floor at $9 (i. e., price must be $9 or higher) in the above market, how many goods will be traded?
a. Five
b. Four
c. Three
d. Two
3. Suppose there is a single market maker in this market. What is the optimal bid
Answers: 3
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