Question 1:
Based the tables below, if Heath and Cliff are the only buyers in the pizza market and Cathy is the only seller, what is the:
- market equilibrium price?
- market equilibrium quantity?
- consumer surplus at the market equilibrium?
- producer surplus at the market equilibrium?
- total benefit to society of this market?
You must show your calculations and/or use diagram(s) to demonstrate how you arrived at your answers.
|
Price of pizza
|
Quantity of pizza demanded by
|
|
Heath
|
Cliff
|
|
$15
|
0
|
0
|
|
$14
|
1
|
0
|
|
$13
|
3
|
1
|
|
$12
|
5
|
3
|
|
$11
|
7
|
5
|
|
$10
|
9
|
7
|
|
$9
|
11
|
9
|
|
Price of pizza
|
Quantity supplied by Cathy
|
|
$15
|
28
|
|
$14
|
24
|
|
$13
|
20
|
|
$12
|
16
|
|
$11
|
12
|
|
$10
|
8
|
|
$9
|
4
|
|
$8
|
0
|
and Is the pizza market described in Question 1 above efficient? Explain. Is it equitable? Explain.