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Pencil Exercise
Pencil Exercise
Three of the six are given positive number of a good, say pencils; one is given
one, one is given two, and the third is given four pencils.
Three of the six are not given any pencils, but are told the following:
(i) You are given Rs.5. One pencil held in hand is worth Rs.1 to you, two are
worth Rs.1.50, three are worth Rs.1.80, and four or more are worth Rs.1.85.
(ii) You are given Rs.5. One pencil held in hand is worth Rs.1 to you, two are
worth Rs.1.30 to you, three are worth Rs.1.50, and four or more will be worth
Rs.1.60.
(iii) You are given Rs.5. One pencil held at the end is worth Rs.0.50 to you, two
are worth Rs.1, and three or more are worth Rs.1.50.
The participants are allowed to buy and sell pencils. From the data given can
you construct the demand and supply schedules?