Look at the following tables, 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.

a. What aer the equilibrium price and quanotrit yt hfe data displayed in the two tables?

b. What if, instead f obags fo oarnges, the daat in the two tables dealt with a public good like fireworks displays? If all the buyers free ride, what will be the quantity suppliedb ypriv ateseller s?

c. Assume that ew aer back to talking about baf gs o oranges (a private good), but that the government has decided that tossed orange peels impose a negative externality on the public that must be rectified by imposing a $2-per-bag tax on sellers.

What are the new equilibrium price and quantity? If thenewequilibriumquantityisthe optimalquantity, by how many bags were oranges being overproduced before?

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Maximum Price Willing Person to Pay Actual Price (Equilibrium Price) Bob $13 $8 Barb. 12 8 Bill 11 8 Bart 10 8 Brent 9 8 Betty 8 8 Minimum Acceptable Person Price Carlos $3 Actual Price (Equilibrium Price) $8 Courtney 4 8 Chuck 5 8 Cindy 6 8 Craig 7 8 Chad 8 8