“Market Equilibrium Price and Price Control” Suppose there are nine sellers and nine buyers in a competitive market, each willing to buy or sell one unit of a good, with values {$10, $9, $8, $7, $6,...

“Market Equilibrium Price and Price Control”

Suppose there are nine sellers and nine buyers in a competitive market, each willing to buy or sell one unit of a good, with values {$10, $9, $8, $7, $6, $5, $4, $3, $2} Assuming there are no transactions costs, what is the equilibrium price and quantity in this market?

If the government imposes a price floor at $9 (ie, price must be $9 or higher) in the above market, how many goods will be traded?