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Suppose there are 7 persons in the economy with the following willingness to pay for a good. $17.7 $15.7 $13.7 $11.7 $9.7 $5.7 $3.7
Suppose there are 7 persons in the economy with the following willingness to pay for a good. $17.7 $15.7 $13.7 $11.7 $9.7 $5.7 $3.7 At the price ceiling of $3.7, only 3 units are supplied. Consider the allocation of goods based on bribery. Suppose the amount of bribe can be observed by everyone, the equilibrium amount of bribe in this market has to be strictly higher than $[Answer] per unit. (In decimal numbers, with two decimal places, please.) (B) Continue with the last question. Consider the alternative allocation mechanism under such price ceiling: waiting in line. Suppose everyone earns $2 per hour. Compared to the allocation by bribery, the allocation by waiting in line will lead to at least $[Answer] more welfare loss to the society. (In decimal numbers, with two decimal places, please.)
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