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2. Consider the following experimental market: Seller WTA Buyer WTP Aya $1.20 Adil $1.80 Basma $1.20 Barack $1.40 Dalia $1.60 Dawoud $1.40 (a) State the
2. Consider the following experimental market: Seller WTA Buyer WTP Aya $1.20 Adil $1.80 Basma $1.20 Barack $1.40 Dalia $1.60 Dawoud $1.40 (a) State the equilibrium quantity and price. (b) Calculate the maximum surplus. (c) Identify extramarginal buyers and sellers. (d) Find a buyer and a seller which can make an extramarginal trade. (e) Given the extramarginal trade from (d), how many quantities can be traded maxim ally? Compare with the equilibrium quatity. Will this market be efficient
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