Question $8$

Consider the following limit$-$order book for a share of stock. The last trade in the stock occurred at a price of $$80.$

$\backslash$table$[[$Limit Buy,Orders,Limit Sell Orders$],[$Price$,$Shares,Price,Shares,$],[$$$79\mathrm{.}75,500,$$$80\mathrm{.}25,100,],[79\mathrm{.}50,500,80\mathrm{.}50,100,],[79\mathrm{.}25,500,83\mathrm{.}75,300,],[79\mathrm{.}00,300,87\mathrm{.}25,100,],[78\mathrm{.}50,600,,,]]$

a$.$ If a market buy order for $100$ shares comes in$,$ at what price will it be filled? $($Round your answer to $2$ decimal places. Omit the $"$ $ $"$ sign in your response.$)$

Price $

b$.$ At what price would the next market buy order be filled? $($Round your answer to $2$ decimal places. Omit the $"$$$"$ sign in your response.$)$

Price $

If you were a security dealer, would you want to increase or decrease your inventory of this stock?

$($Fill the blank with increase or decrease$)$