There exist only 8 copies of the novel The Secret Mirror that were signed by its author Herbert Quain. The valuations of the current owners are {80, 95, 100, 120, 135, 145, 200, 1000} in thousands of . There are 7 other people with a strictly positive valuation for this rare book. Their valuations are {40, 45, 85, 90, 95, 105, 180} (1000s ). Potential buyers and sellers have until recently been unaware of each other, but now they have all joined the same marketplace for rare books. (a) How much total surplus would this new market generate in equilibrium? (b) Suppose that, instead of all buyers and sellers entering the market at once, they arrive sequentially and trade without any knowledge of potential future trading partners. How, if at all, could a fortuitous order of arrivals result in such a trading pattern that total surplus is higher than in part 3a? (c) Continued from part 3a. Some time after the market clears, one of the owners passes away and her copy is inherited by a son who values the book at only half the value that she did. How much additional surplus could a new trade now generate, at best?