The accompanying table shows the supply and demand schedules for used copies of the first edition of this textbook. The supply schedule is derived from
offers at amazon.com. The demand schedule is estimated.
Price of Book
Quantity of Books Demanded
Quantity of Books Supplied
$60
30
0
$65
27
3
$70
25
7
$75
20
7
$80
17
8
$85
15
15
$90
12
16
$95
9
17
$100
8
29
$105
2
31
$110
0
34
a. Calculate consumer and producer surplus at the equilibrium in this market.
Now the second edition of this textbook becomes available. As a result the willingness to pay of each potential buyer for a second-hand copy of the first
edition falls by $20. In a table show the new demand schedule and again calculate consumer and producer surplus at the new equilibrium.
