Suppose we have a set of 3 sellers labeled a, b, and c, and a set of 3 buyers labeled x, y, and z. Each seller offers a distinct house for sale, and the valuations of the buyers for the houses are as follows
Suppose we have a set of 3 sellers labeled a, b, and c, and a set of 3 buyers labeled x, y, and z. Each seller offers a distinct house for sale, and the valuations of the buyers for the houses are as follows
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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
Transcribed Image Text:Suppose we have a set of 3 sellers labeled a, b, and c, and a set of 3 buyers labeled x, y, and z. Each
seller offers a distinct house for sale, and the valuations of the buyers for the houses are as follows
a
b
2
y
8
5
8
7
Suppose that seller a charges 2, seller b charges 3 and seller c charges 1.
(a) Sketch the preferred seller graph at these prices. Does the market clear at these prices?
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