Firm ABC is selling 100,000 shares in its initial public offering (IPO). Firm ABC hires an investment bank that reaches out to its institutional clients to populate the demand curve for the shares of Firm ABC. This is called the book building process. Firm ABC wants to sell the 100,000 shares for no less than $20 per share. The investment bank receives the following orders: - Institution A: Buy 30K shares for no more than $30 per share; - Institution B: Buy 40K shares for no more than $28 per share; - Institution C: Buy 30K shares for no more than $26 per share; - Institution D: Buy 30K shares for no more than $24 per share; - Institution E: Buy 20K shares for no more than $22 per share. a) Graph the supply and demand curves in the IPO auction. At which prices would the market clear, in that volume is maximized and order imbalance is minimized? Which price would the investment bank choose so that all 100,000 shares are sold and the IPO price is maximized? b) Suppose that a large retail trader does not have access to the IPO. The trader would have been willing to submit an order to buy 40K shares for no more than $32 per share. Recreate the supplydemand graph in (a) with this order included in the demand curve. At which price will the market clear? How much money is "left on the table" because this retail order was not included in the IPO