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If we arrange the WTP values from high to low and the cost values from low to high, we can use the data to plot

If we arrange the WTP values from high to low and the cost values from low to high, we can use the data to plot the diagram to the right. Q WTP Costs 1 20 1 2 18 2 3 17 4 4 14 5 5 14 7 6 13 8 7 12 11 8 11 12 9 9 12 10 8 12 Part 3 What is the total gain that can be realized on the sale (by sellers) and purchase (by buyers) of the 4th unit of this good? $ 9. (Hint: use the data in the table above to compute the gain.) Part 4 Will this unit be traded? Yes. No

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