The tables below show reservation values of buyers and sellers in a market. There are three buyers and two sellers. Each buyer's reservation values for the fourth unit and above are negative, and each seller can produce at most four units.

-Refer to the tables above.Suppose that the price is $34 per unit.What is the sum of the three buyers' surplus? What is the sum of the two sellers' surplus? What is the social surplus?
A) Sum of buyers' surplus = $77; Sum of sellers' surplus = $115; Social surplus = $187
B) Sum of buyers' surplus = $92; Sum of sellers' surplus = $95; Social surplus = $187
C) Sum of buyers' surplus = $66; Sum of sellers' surplus = $105; Social surplus = $171
D) Sum of buyers' surplus = $108; Sum of sellers' surplus = $78; Social surplus = $186

Question

The tables below show reservation values of buyers and sellers in a market. There are three buyers and two sellers. Each buyer's reservation values for the fourth unit and above are negative, and each seller can produce at most four units.
 
-Refer to the tables above.Suppose that the price is $34 per unit.What is the sum of the three buyers' surplus? What is the sum of the two sellers' surplus? What is the social surplus?
A) Sum of buyers' surplus = $77; Sum of sellers' surplus = $115; Social surplus = $187 
B) Sum of buyers' surplus = $92; Sum of sellers' surplus = $95; Social surplus = $187 
C) Sum of buyers' surplus = $66; Sum of sellers' surplus = $105; Social surplus = $171 
D) Sum of buyers' surplus = $108; Sum of sellers' surplus = $78; Social surplus = $186

Quizplus · Accepted Answer

The sum of the three buyers' surplus is $77, the sum of the two sellers' surplus is $115, and the social surplus is $187.

The Tables Below Show Reservation Values of Buyers and Sellers