Order the answer to: Suppose you decided to follow in Vernon Smith’s footsteps and

Paper help business-economics Order the answer to: Suppose you decided to follow in Vernon Smith’s footsteps and

business-economics

Order the answer to: Suppose you decided to follow in Vernon Smith’s footsteps and

Question Suppose you decided to follow in Vernon Smith’s footsteps and conducted your own experiment with your friends. You give out 10 cards, 5 cards to buyers with the figures for willingness to pay of $1, $2, $3, $4, and $5, and 5 cards to sellers with the amounts for costs of $1, $2, $3, $4, and $5. The rules are the same as Vernon Smith implemented.
a. Draw the supply and demand curves for this market. At a price of $3.50 how many units are demanded? And supplied?
b. Assuming the market works as predicted, and the market moves to equilibrium, will the buyer who values the good at $1 be able to purchase? Why or why not?
Subject business-economics
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