Suppose that in a competitive market for ukuleles, three buyers (Peter, Paul, and Mary) have the marginal benefit (MB) schedules below.QuantityMB—PeterMB—PaulMB—Mary11501401302120110100390807046050405302010If the equilibrium price is $80, calculate the quantity purchased by each buyer.

Marginal benefit: It is the maximum price the consumer is willing to pay for a particular quantity…

Answered: Suppose that in a competitive market…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that in a competitive market for ukuleles, three buyers (Peter, Paul, and Mary) have the marginal benefit (MB) schedules below.

Quantity	MB—Peter	MB—Paul	MB—Mary
1	150	140	130
2	120	110	100
3	90	80	70
4	60	50	40
5	30	20	10

If the equilibrium price is $80, calculate the quantity purchased by each buyer.

Definition Video Definition Point where the demand and supply curves intersect. At the equilibrium price the quantity supplied of a good is equal to the quantity demanded. When the market is not in equilibrium, market surplus or market shortage occurs. The region that is above the price equilibrium indicates market surplus and the region below the price equilibrium indicates market shortage. Video

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