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18

Look at the two tables below. What is the total surplus if Bob buys a unit from Carlos? If Barb buys a unit from Courtney? If Bob buys a unit from Chad? If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved? Minimum Acceptable Price S5 Person Bob Barb Bill Bart Brent Betty Maximum Price Willing to Pay $20 16 14 12 10 Person Carlos Courtney Chuck Cindy Craig Chad 13 15

a. What is the total surplus if Bob buys a unit from Carlos? b. What is the total surplus if Barb buys a unit from Courtney? c. What is the total surplus if Bob buys a unit from Chad? d. If you match up pairs of buyers and sellers so as to maximize the total surplus of all transactions, what is the largest total surplus that can be achieved?

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