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13 November, 20:38

Suppose there are three identical vases for sale. Buyer #1 is wiling to pay $30 for one, buyer #2 is willing to pay $25 for one, while buyer #3 is willing to pay $20 for one. If the market price is $25, how many vases will be sold and what is the value of consumer surplus in this market?

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  1. 13 November, 20:56
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    The amount of vases that would be sold would be 2 and the value of consumer surplus in this market would be $5.
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