00:01
In the marginal pair, we need to arrange the buyers and sellers in descending order.
00:04
So the buyers ' valuations in descending order are v1 is 20, v2 is 18, v3 is equal to v4, which is equal to v5, which is equal to v6, which is equal to 15, and then v7 and v8 are equal to 12.
00:25
And the sellers ' costs are all the same as 10.
00:28
Since there are five sellers each with a cost of 10, the supply curve is going to be a flat at a price of 10 up to five units, and the demand curve is going to start at 20 for the first units and then drop down to 12.
00:47
The marginal pair is the pair of the last buyer who is willing to pay at least as much as the marginal cost.
00:53
In this case, the fifth buyer is willing to pay $15, which is above the marginal cost, and the fifth seller is willing to sell at the marginal cost of $10.
01:05
Therefore, the marginal pair in this market is the fifth buyer and the fifth seller...