Analyzing Taxes and Welfare

Analyzing Taxes and Welfare Buyer Buyer Value Seller Seller Cost 1 $16.00 1 $4.00 2 $15.50 2 $4.50 3 $15.00 3 $5.00 4 $14.00 4 $6.00 5 $13.50 5 $6.50 6 $13.00 6 $7.00 7 $12.50 7 $7.50 8 $12.00 8 $8.00 9 $11.00 9 $9.00 10 $10.50 10 $9.50 11 $10.00 11 $10.00 12 $9.50 12 $10.50 1.1. If the price is $10, how many buyers will be willing to buy? That is, how many buyers have a buyer value that is greater than or equal to the $14 cost of a textbook--$10 to the seller and $4 in tax? (As always, unless stated otherwise, we are following the convention that traders who are indifferent about trading at a price go ahead and trade, so someone with a buyer value equal to $14 will buy.)