You collected the following data from a double auction market.
%matplotlib inline
import pandas as pd
dframe = pd.read_csv("da_data1.csv")
dframe
Values | Bidders | Cost | Sellers | |
---|---|---|---|---|
0 | 1 | 0 | 1 | 4 |
1 | 2 | 0 | 2 | 0 |
2 | 3 | 1 | 3 | 1 |
3 | 4 | 1 | 4 | 3 |
4 | 5 | 1 | 5 | 1 |
5 | 6 | 1 | 6 | 0 |
6 | 7 | 0 | 7 | 0 |
7 | 8 | 2 | 8 | 0 |
8 | 9 | 1 | 9 | 0 |
9 | 10 | 2 | 10 | 0 |
Graph the supply curve, given the list of unit cost [10 points]
Graph the final demand curve, given the unit values [10 points]
What’s the predicted market price and quantity in equilibrium? [10 points]
Compute the profit or surplus for all traders. [10 points]
If the market price is set by regulation at 2, what's the predicted equilibrium price and quantity? Compute the profit or surplus for all traders and compare your answers with respect to before. Is there any difference? Why? (Note: make sure that you write down your assumptions) [10 points]
If the market price is set at 9, what's the predicted equilibrium price and quantity? Compute the profit or surplus for all traders and compare your answers against the free market scenario. Is there any difference? Why? Note: make sure that you write down your assumptions)[10 points]
Imagine that this market represents the market of roses before Valentine's Day. Do you expect that WTP for the buyers increases or decreases? Assume that the shift of WTP is $\pm 20\%$. Please draw this new scenario in a new chart and discuss your results. [20 points]
After reading the following article (see below), write in two paragrahs or so, why do you think this happen in an field that study the efficiency of markets? Is there any problem with the demand or supply? [20 points] https://www.nytimes.com/2018/01/10/us/politics/women-economics.html
from IPython.core.display import HTML
def css_styling():
styles = open("custom.css", "r").read()
return HTML(styles)
css_styling()