hw2a.s09 - Homework 2- ENNEC 100 Spring 2009 Abbreviated...

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Homework 2- ENNEC 100 Spring 2009 Abbreviated and non –guaranteed answers Answers should be typed, one side of the page, stapled. Show all work. Paper is cheap. Due in class Thursday, February 19. Students often have questions for the instructor about this exercise. However, one should be aware that his first response to any question about parts 1 through 3 is “what happened in the experiment?” His second response is likely to be “what did we do in class.” 1) (30 points) Assume 24 people took part in a market supply and demand experiment. Below are the values they faced. Carefully draw out the implied market supply and demand curves. using EXCEL. What is the equilibrium price and quantity in this market? How much "wealth" did this market create? For simplicity, assume if a person is indifferent, they will participate in the market. If there is a range of possible equilibrium prices, choose the one in the middle. Player # Seller Values Buyer Values Unit # 1 2 3 1 2 3 1 346.5 429 504 462 427.5 384 2 373.5 454.5 474 511.5 427.5 417 3 351 466.5 496.5 537 406.5 376.5 4 186 234.75 261 270 203.25 162 5 367.5 457.5 562.5 543 424.5 352.5 6 361.5 436.5 507 528 447 364.5 7 502.5 430.5 528 543 453 361.5 8 391.5 448.5 460.5 535.5 457.5 367.5 9 409.5 424.5 469.5 531 462 361.5 10 399 421.5 463.5 556.5 466.5 408 11 423 451.5 553.5 492 436.5 418.5 12 379.5 460.5 751.5 454.5 424.5 180 sort from low to high sort from high to low Price: midpoint last "yes" 433.5 Sellers Number Is seller value less than buyer value? Buyers Seller surplus Buyer surplus 186 1 Yes 556.5 247.5 123 234.75 2 Yes 543 198.75 109.5 261 3 Yes 543 172.5 109.5 346.5 4 Yes 537 87 103.5
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351 5 Yes 535.5 82.5 102 361.5 6 Yes 531 72 97.5 367.5 7 Yes 528 66 94.5 373.5 8 Yes 511.5 60 78 379.5 9 Yes 492 54 58.5 391.5 10 Yes 466.5 42 33 399 11 Yes 462 34.5 28.5 409.5 12 Yes 462 24 28.5 421.5 13 Yes 457.5 12 24 423 14 Yes 454.5 10.5 21 424.5 15 Yes 453 9 19.5 429 16 Yes 447 4.5 13.5 430.5 17 Yes 436.5 3 3 436.5 18 No 427.5 0 0 448.5 19 No 427.5 0 0 451.5 20 No 424.5 0 0 454.5 21 No 424.5 0 0 457.5 22 No 418.5 0 0 460.5 23 No 417 0 0 460.5 24 No 408 0 0 463.5 25 No 406.5 0 0 466.5 26 No 384 0 0 469.5 27 No 376.5 0 0 474 28 No 367.5 0 0 496.5 29 No 364.5 0 0 502.5 30 No 361.5 0 0 504 31 No 361.5 0 0 507 32 No 352.5 0 0 528 33 No 270 0 0 553.5 34 No 203.25 0 0 562.5 35 No 180 0 0 751.5 36 No 162 0 0 Total 1179.75 1047 grand total 2226.75 So we can see that the equilibrium quantity is 17.
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hw2a.s09 - Homework 2- ENNEC 100 Spring 2009 Abbreviated...

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