Question

Look at the two tables below, which show, respectively, the willingness to pay and willingness to accept of buyers and sellers of bags of oranges. For the following questions, assume that the equilibrium price and quantity will depend on the indicated changes in supply and demand. Assume that the only market participants are those listed by name in the two tables.

equilibrium price and quantity will depend on the Indicated changes in supply and demand. Assume that the only market are those isted by name in the two tables $21 16 10 Barb 10 Courtney 10 10 10 10 Bart Brent 12 10 10 Instructions: Enter your answers as whole numbers a. Given the equilibrium price of $10, what is the equilibrium quantity given the data above? public good like freworks clisplays? I alilthe buyers free ride, what will be the quantity supplied by private sellers b. What if, instead of bags of oranges, the data in the two tables dealt witha that tossed orange peels impose a negative externality on the public that talksing about begs of oranges (a private good], but that the governmont has decided c Assume that we are back to must be rectified by imposing a $7-per-bag tax on sellers. What is the new equilibrium price? P-s What is the new equilibrium quantity? f the new equllbrium quantity is the optimal quantity, by how many bings were oranges being overproduced before?

Answer 1