Suppose there are 100 buyers and 100 sellers in the used car ...

[allihubbard]

Suppose there are 100 buyers and 100 sellers in the used car market. Half of the sellers have a lemon to sell and half have a peach. Buyers value lemons at $4,000 and peaches at $11,000, while sellers value lemons at $3,400 and peaches at $8,250. Only sellers know if the car is a lemon or a peach. Suppose the current price of the car is $7,500. What is the total surplus in the market? If the sellers of peaches can get their cars certified for $800, what is total surplus in the market?
◦ $30,000.00, $167,500.00
◦ $30,000.00, $167,450.00
◦ $167,500.00, $167,450.00
◦ $167,500.00, $30,000.00

[FireandIce]

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[allihubbard]

Wow, this really help

[Animal_Goddess]

Thanks for the timely response, appreciate it