Here is the table of reservation prices for apartments taken from Chapter 1:
Person = A B C D E F G H
Price = 40 25 30 35 10 18 15 5
(a) If the equilibrium rent for an apartment turns out to be $20, which consumers will get apartments?
(b) If the equilibrium rent for an apartment turns out to be $20, what is the consumer’s (net) surplus generated in this market for person A? ________. For person B? _______.
(c) If the equilibrium rent is $20, what is the total net consumers’ surplus generated in the market?
(d) If the equilibrium rent is $20, what is the total gross consumers’ surplus in the market?
(e) If the rent declines to $19, how much does the gross surplus increase?
(f) If the rent declines to $19, how much does the net surplus increase?