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Suppose that in a competitive market for ukuleles, three buyers (Peter, Paul, and Mary) have the marginal benefit ( MB ) schedules below. Quantity MB
Suppose that in a competitive market for ukuleles, three buyers (Peter, Paul, and Mary) have the marginal benefit (MB) schedules below.
Quantity | MBPeter ($) | MBPaul ($) | MBMary ($) |
---|---|---|---|
1 | 150 | 140 | 130 |
2 | 120 | 110 | 100 |
3 | 90 | 80 | 70 |
4 | 60 | 50 | 40 |
5 | 30 | 20 | 10 |
If the equilibrium price is $80, calculate the following:
The quantity purchased by each buyer.
The consumer surplus for each buyer.
The consumer surplus for the market as a whole.
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