Scenario: Suppose a competitive market has ten buyers and ten sellers. The product exchanged in this market is beach hats, which are indivisible. The following table shows the reservation values for both buyers and sellers.

-Refer to the scenario above.Suppose a price floor of $12 is imposed on this market.,which does not allow the price of hats drop below $12.Under this restriction,________ hats are exchanged in this market,and the social surplus will be ________.
A) 4; $41
B) 6; $38
C) 6; $29
D) 2; $40

Question

Scenario: Suppose a competitive market has ten buyers and ten sellers. The product exchanged in this market is beach hats, which are indivisible. The following table shows the reservation values for both buyers and sellers.
 
-Refer to the scenario above.Suppose a price floor of $12 is imposed on this market.,which does not allow the price of hats drop below $12.Under this restriction,________ hats are exchanged in this market,and the social surplus will be ________.
A) 4; $41 
B) 6; $38 
C) 6; $29 
D) 2; $40

Quizplus · Accepted Answer

The Answer of Scenario: Suppose a competitive market has ten buyers and ten sellers. The product exchanged in this market is beach hats, which are indivisible. The following table shows the reservation values for both buyers and sellers.
 
-Refer to the scenario above.Suppose a price floor of $12 is imposed on this market.,which does not allow the price of hats drop below $12.Under this restriction,________ hats are exchanged in this market,and the social surplus will be ________.
A) 4; $41 
B) 6; $38 
C) 6; $29 
D) 2; $40

Scenario: Suppose a Competitive Market Has Ten Buyers and Ten