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How to solve the problem e) to g) ? Problem 3. Suppose you have 8 used Varian's lntemediate Micro textbooks, which you want to get

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How to solve the problem e) to g) ?

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Problem 3. Suppose you have 8 used Varian's lntemediate Micro textbooks, which you want to get rid of. There are 8 potential buyers who are willing to buy your used textbooks. You know how much each potential buyer is willing to pay for a single book. Let's call this amount the reservation price. Reservation prices of potential buyers are in the table. BuyerABCDEFGH Price 40 25 30 35 1018 155 (For example, buyer A is willing to pay at most 40 dollars for a single book} (a} If you offer all your books at the same price of $20, which buyers will buy the books? Abzcay {b} If you offer all your books at the same price of $20, what is consumer A's net consumer's surplus? \\ (3* (c) If you offer all your books at the same price of $20. what is consumer B's net consumer's surplus? (d} If you offer all your books at the same price of $20, what is the total net consumers' surplus generated in the market? a 4 DD {e} If you sell all your books at the same price of $20, what is the total gross consumers' surplus generated in the market? ( If you lower the sale price of your books to $19. by how much does the total net consumers' surplus increase? (g} If you lower the sale price of your books to $19, by how much does the total gross consumers' surplus increase

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