The sequence is bob , bif, Bea, Ben,bud

1 Question 1 Suppose we have the following sellers in a market , with their associated quantities and reservation prices: Size Reservation Price Trader Sam 2 101 Sol 1 98 Stu 5 102 Sue 6 100 We also have the following buyers, with their associated quantities and willingness to pay: Trader Size WTP Bea 3 100 Ben 2 100 Bif 4 103 Bob 2 101 Bud 7 98 1. [2] In a call auction, what is the a) traded quantity b) social welfare 2. [2+2] Suppose in a continuous auction, all the sell orders arrive before any buy order arrives. The buy orders arrive in your indicated sequence. What is the a) traded quantity b) social welfare 3. [2] What sequence should the buy orders arrive in to maximise the traded quantity in the continuous auction? 4. [2] What sequence should the buy orders arrive in to maximise welfare in the continuous auction? 5. [2] Based on your answer to 4, argue, in 30 words, that a call auction maximises social welfare