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The Question: Each Saturday there is a marketplace in the town of Tchotchka at which it is possible to buy githerments. These items are demanded by consumers and the market each week attracts a gathering of willing suppliers looking for customers and a group of buyers looking to take home a few githerments to enjoy during the week ahead. To establish a thriving githerment market, the marketplace recruits an auctioneer (trained as an "invisible hand" of course) who looks to set the appropriate price. Each week the auctioneer gathers sellers on the left and buyers on the right. This week we know, but the auctioneer does not, that each of the sellers standing to the left will sell the following amounts at the following price levels: Seller Quantity willing to sell For at least ($) per unit Ahmed 210 37 Brian 150 44 Caroline 275 43 Delia 150 36 Echo 190 35 Freda 200 42 George 200 39 Hamid 250 41 Israel 100 34 Jose 100 45 We also know, but the auctioneer does not, that the buyers standing on the right will buy the following amounts at the following prices: Buyer Quantity willing to buy For no more than ($) per unit Keiran 100 47 Laura 200 46 Micah 250 45 Norah 200 43 Olivia 150 42 Paris 200 41 Quentin 150 39 Reza 100 38 Salina 200 37 Talin 125 35 As the auctioneer calls out prices, the buyers and sellers raise signs indicating how much they are willing to buy or sell. What happens? 1. Explain the process 2. Draw a diagram 3. Explain how the auctioneer achieves his objective 4. Give the size of the githerment market for this Saturday The Question: Each Saturday there is a marketplace in the town of Tchotchka at which it is possible to buy githerments. These items are demanded by consumers and the market each week attracts a gathering of willing suppliers looking for customers and a group of buyers looking to take home a few githerments to enjoy during the week ahead. To establish a thriving githerment market, the marketplace recruits an auctioneer (trained as an "invisible hand" of course) who looks to set the appropriate price. Each week the auctioneer gathers sellers on the left and buyers on the right. This week we know, but the auctioneer does not, that each of the sellers standing to the left will sell the following amounts at the following price levels: Seller Quantity willing to sell For at least ($) per unit Ahmed 210 37 Brian 150 44 Caroline 275 43 Delia 150 36 Echo 190 35 Freda 200 42 George 200 39 Hamid 250 41 Israel 100 34 Jose 100 45 We also know, but the auctioneer does not, that the buyers standing on the right will buy the following amounts at the following prices: Buyer Quantity willing to buy For no more than ($) per unit Keiran 100 47 Laura 200 46 Micah 250 45 Norah 200 43 Olivia 150 42 Paris 200 41 Quentin 150 39 Reza 100 38 Salina 200 37 Talin 125 35 As the auctioneer calls out prices, the buyers and sellers raise signs indicating how much they are willing to buy or sell. What happens? 1. Explain the process 2. Draw a diagram 3. Explain how the auctioneer achieves his objective 4. Give the size of the githerment market for this Saturday