This assignment relates to following learning outcomes:

explain the origin of both consumer surplus and producer surplus, and explain how properly functioning markets maximize their sum, total surplus, while optimally allocating resources

Follow the instructions below to complete the assignment.

Instructions

Once you've read Chapter 4: Market Failure: Public Goods and Externalities then read following problem(s) and find the solution(s).

Refer to Table 4.1. Use this data to draw a demand curve.

Table 4.1.

Person	Maximum Price	Actual Price	Consumer Surplus
1	400	399
2	400	399
3	500	399
4	599.98	399
5	120	399
6	400	399
7	225	399
8	500	399
9	499.99	399
10	800	399
11	320	399
12	400	399