2. Consider a marltet composed of E buyers and 3 sellers. Each of the 8 sellers has one unit of the good to sell and each of the buyers wants to buy exactly one unit of the good. The reservation prices of the buyers and the costs of production of each of the suppliers are given in the following table; momm Guam: 1 Unit - a} Assume that both buyers and sellers are perfectly competitive. What is the market clearing price? What is the total surplus associated with the market clearing price and quantity? b} Match each buyer with a seller such that each can gain by trading with the other (for example a buyer with a reservation value of 4 can be matched with a seller with a cost of 3 and each could gain by trading with the other). What would be the total surplus generated by this matching of every buyer and seller? Compare your answer with (a). c} Although the surplus is higher in {a} than in {b} are there some traders that would prefer the outcome in (b)? d} Bonus: show that there is no matching mechanism that generates more surplus than the