2.4 9 agents derive utility from bananas and from money and have quasi-linear utility. (10%)
\begin{itemize}
\item Three of the agents each derive utility
$u_a(b) = 20b - b^2$
from consumption of $b$ cases of bananas.
\item Three of the agents each derive utility
$u_b(b) = 20b - 2b^2$
from consumption of $b$ cases of bananas.
\item Three of the agents each derive utility
$u_c(b) = 20b - 3b^2$
from consumption of $b$ cases of bananas.
\end{itemize}
Find the total demand $Q(p)$ function, as a function of price of case of bananas, and inverse demand.
2.5 The cost of supplying a total of $B$ cases of bananas overall is given by
$C(B) = 5 \cdot B + \frac{7}{22} \cdot B^2$
Find the equilibrium price and total quantity. (5%)
2.6 Suppose only $X$ cases of bananas can be supplied, where $X$ is below the equilibrium quantity. Calculate the resulting deadweight loss in welfare, and provide a graph showing inverse demand, marginal cost, and deadweight loss. (10%)
