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Consider the market created by distributing the following 20 playing cards to subjects: Heart Ace, 2, ..., 10, and Spades Ace, 2, 3, ..., 10.
Consider the market created by distributing the following 20 playing cards to subjects: Heart Ace, 2, ..., 10, and Spades Ace, 2, 3, ..., 10. The red cards (Hearts) are the costs for the sellers, while the black cards (spades) are the values for the buyers, the Aces representing 1s.
Which buyers and sellers would trade at the competitive equilibrium price? How much surplus is generated in the market?
explain it clearly with calculations and plz avoid handwriting
Thank you
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