Question

Use the willingness-to-pay information about the buyers (Ariel, Bridget, and Connie) and the willingness-to-accept information about the sellers (Daniel, Etienne, and Franklin) below to construct a "stepped" demand and supply diagram like this one from my notes on Unit #7. (You'll also have one question to answer below.

Willingness-To-Pay information
    Ariel   Bridget   Connie
willingness-to-pay for the 1st widget   $7   $7   $9
willingness-to-pay for the 2nd widget   $6   $6   $8
willingness-to-pay for the 3rd widget   $5   $5   $6
willingness-to-pay for the 4th widget   $3   $4   $5
willingness-to-pay for the 5th widget   $1   $2   $3
            
            
Willingness-To-Accept information
    Daniel   Etienne   Franklin
willingness-to-accept for the 1st widget   $1   $2   $3
willingness-to-accept for the 2nd widget   $4   $4   $5
willingness-to-accept for the 3rd widget   $7   $6   $7
willingness-to-accept for the 4th widget   $10   $7   $10
willingness-to-accept for the 5th widget   $12   $8   $12

(To create the curves, you'll first need to create the demand and supply schedules as I did in my notes on Unit #7. Once you've got the demand and supply schedules, you can refer to this tutorial to see how to construct the curves.)

Draw by hand, or use a software program, to create the demand and supply schedules based on these tables. Then, use the Assessment called "GA: Consumer and Producer Surplus -- PART 2" to upload your drawing. Note that these tables will not show up in that Assessment; it is simply there so you have somewhere to upload the drawing.

Your drawing should have the following things clearly labeled: the demand curve, the supply curve, the area of consumer surplus, and the area of producer surplus.

So here's the question you have to answer before you submit this part:

What's the dollar value of the total surplus (consumer surplus plus producer surplus)?

Answer 1