Which of the following is true in laboratory implementations of double auction market mechanisms?
A) The speed of convergence of market prices to the predicted equilibrium price depends more on the relative magnitudes of the consumer and producer surplus at the predicted equilibrium price than on the magnitude of the excess demand or excess supply at prices slightly higher or slightly lower than the predicted equilibrium price.
B) The speed of convergence of market prices to the predicted equilibrium price depends more on the magnitude of the excess demand or excess supply at prices slightly higher or slightly lower than the predicted equilibrium price than on the relative magnitudes of the consumer and producer surplus at the predicted equilibrium price.
C) The speed of convergence of market prices to the predicted equilibrium price depends more on the relative slopes of the demand and supply curves rather than on the magnitudes of the consumer and producer surplus at the predicted equilibrium price.
D) The speed of convergence of market prices to the predicted equilibrium price depends more on ability of sellers to engage in tacit collusion or not rather than the relative magnitudes of the consumer and producer surplus at the predicted equilibrium price.
Correct Answer:
Verified
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Q18: Suppose the magnitude of consumer surplus is
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Q23: Consumer surplus is measured by:
A) The area
Q24: Producer surplus is measured by:
A) The area
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