A market maker faces the following demand and supply for widgets. Eleven buyers are willing to buy at the following prices: $15, $14, $13, $12, $11, $10, $9, $8, $7, $6, $5 . Eleven sellers are also willing to sell at the same prices. If the market maker decides to only make one transaction what is his profit/bid-ask margin
a. $8
b. $10
c. $12
d. $16
b
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A bond that is bought at a price below its face value and the face value is repaid at a maturity date is called a
A) simple loan. B) fixed-payment loan. C) coupon bond. D) discount bond.
Free competitive markets do not process information effectively
Indicate whether the statement is true or false
The Temporary Aid to Needy Families (TANF) program:
A. requires that recipients participate in work activities. B. is associated with a decrease in single mothers working. C. has caused a rise in national welfare caseloads. D. was an important factor in the increase in poverty among children between 1993 and 2002.
If government spending and taxes increase by the same amount,
A) the IS curve does not shift B) the IS curve shift leftward C) the IS curve shifts rightward D) the LM curve shifts downward