1.3. Jon is on eBay, bidding for a fir t edition of the influential Frank Miller graphic novel Batman:

The Dark Knight R eturns. In this market, who is Jon competing with: the seller of the graphic novel or the other bidders?

to pay for the tasty burger is $8 (after all, his girlfriend is a vegetarian, so he doesn't get many opportunities for tasty burgers).

a. How large are the potential gains from trade ifJules and Vincent agree to make this trade?

In other words, what is the sum of producer and consumer surplus if the trade happens?

b. If the trade takes place at $4, how much producer surplus goes to Vincent? How much consumer surplus goes to Jules?

c. If the trade takes place at $7, how much producer surplus goes to Vincent? How much consumer surplus goes to Jules?