Suppose Rose, Amy, Clara, and Martha are consumers in the market for doctor's appointments. They are willing to pay 100, 90, 70, and 50 dollars for a doctor's appointment respectively. The available Doctors are Dr. Tennant, Dr. Smith, Dr. Capaldi and Dr. Eccleston. The lowest price they are willing to accept are 20, 25, 70, and 90 dollars respectively for an appointment. Doctors can only supply one appointment. Hint: The supply curve is also the cost curve for the market. The demand curve is also the willingness to pay curve. Plot out the points for the supply and demand curves and then solve for equilibrium price and quantity.

(a) How many appointments are there in equilibrium?
(b) What is equilibrium price?
(c) What is Consumer Surplus (CS)?
(d) What is Producer Surplus (PS)?
(e) What is (Utilitarian) Social Welfare (W)?

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To find the equilibrium price and quantity we need to plot the supply and demand curves and identify ... View the full answer