Two consumers, Casey and Josey, want cheese-stuffed jalapeo peppers for lunch. Two producers, Cara and Jamie, can

Two consumers, Casey and Josey, want cheese-stuffed jalapeño peppers for lunch. Two producers, Cara and Jamie, can provide them. The accompanying table shows the consumers’

willingness to pay and the producers’ costs. Note that consumers and producers in this market are not willing to consume or produce more than four peppers at any price.

a. Use the table to construct a demand schedule and a supply schedule for prices of $0.00, $0.10, and so on, up to $0.90.

b. Find the equilibrium price and quantity in the market for cheese-stuffed jalapeño peppers.

c. Find consumer, producer, and total surplus in equilibrium in this market.

Transcribed Image Text:

Quantity of peppers Casey's willingness to pay Josey's willingness to pay Cara's Jamie's cost cost 1st pepper $0.90 $0.80 $0.10 $0.30 2nd pepper 0.70 0.60 0.10 0.50 3rd pepper 0.50 0.40 0.40 0.70 4th pepper 0.30 0.30 0.60 0.90