Question

Take a deck of playing cards and remove the aces, jacks, queens, kings, and jokers. Imagine that any remaining card in the deck is a single individual, either a seller or a consumer, and all are gathered at a single perfectly competitive market. Red cards are sellers, and black cards are consumers. The number on a card indicates the individual's WTP or MC. Each seller owns a single unit of an indivisible good. Each consumer can buy at most one unit of the good from a seller. Then the market outcome will be

Answer 1

Answer:

the equilibrium price is 6 and units sold is 10

Explanation:

In the case when we eliminate all the jacks, queens, aces and kings we have a total of 36 card that left with the numbers from 2 to 10

also there are 18 red card of sellers and 18 black card of buyers

Now the following table should be prepared

Price       Quantity demanded      Quantity supplied

2                          18                                2

3                           16                               4

4                           14                               6

5                           12                               8

6                           10                              10

7                            8                               12

8                           6                                14

9                           4                                 16

10                          2                                 19

As we can see that at the price of 6 the quantity demanded would be equivalent to the quantity supplied

So, the equilibrium price is 6 and units sold is 10